Choosing the Right Lot When Building a Home

Your builder is a source of information during this phase. Ask his or her advice to ensure that the home style you’ve chosen can be built on the lot you selected.

Your builder can also help ensure that your choices are in accordance with local zoning laws governing the property and can assist you in obtaining all the necessary permits.
If you already own a lot, you’ll need to go through the same process with your builder before construction can begin. As a lot owner, don’t forget to ask if you can apply the equity from the lot toward your new home’s down payment.
 

About the builder 

The builder you’ve selected will be required to submit current plans and specifications in blueprint form, a formal, detailed contract, and possibly, an agreement of sale on the lot with Dollar Bank. (If your builder is not already approved by Dollar Bank, he or she will be required to complete a builder application, which must be approved prior to underwriting the mortgage.)

We will forward the plans and specifications to an appraiser so that the loan amount can be confirmed. By this time it is important to have already finalized all upgrades and options with your builder so that enough funds are borrowed to cover all costs and that the requirements of the sales contract are met. Construction cannot begin until the mortgage is closed.

The builder is not required to be present at the closing, but Dollar Bank does require that the following documentation be signed before the mortgage is recorded:

  • All Addendums
  • No-Lien Agreement
  • Subcontractor’s Alteration Affidavit
  • Construction Loan Advancement Schedule

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The information presented is general in nature and is for information purposes only. It is not intended to provide specific legal, tax or other advice to individuals.