Hey folks, Art here. Maybe you’ve sketched out a kitchen that actually fits your family. Or you’ve found a piece of land and started picturing a front porch. Building a home can be exciting… and it usually brings up a pretty practical question: where do we start with the financing?
If you’re thinking about building in Tucker or greater Atlanta, start the conversation before the plans and construction contract are final. You don’t need every answer yet. You do need a clear picture of what needs to be reviewed.
What makes a construction loan different?
A construction loan helps finance a home while it is being built. Funds are generally released in stages, called draws, as the project progresses. The lender may require inspections before releasing each draw.
That means the review involves more than your finances. The lender also looks at the builder, plans, construction contract, budget and the home’s expected value once it is finished. Your builder’s estimate matters, but it isn’t the same thing as a financing approval.
Get the project and the paperwork on the same page
Early on, your lender will review your income, assets, debts and credit. At the same time, the project needs enough detail for everyone to understand what is being built and what the budget includes.
Ask your builder for a written scope and a list of anything excluded. If you already own the lot, mention that right away. If you’re still shopping for land, bring the property information before making assumptions about how it fits into your financing.
The appraisal generally considers the home’s anticipated completed value. After approval and closing, construction moves through the agreed process for work, inspections and draws. When the home is finished, the lender reviews completion and the requirements for permanent financing. Ask how those steps would apply to your project.
For Tucker and Atlanta, start with the exact property
A floor plan is only part of the picture. Ask which local office handles your property, what approvals are needed and whether neighborhood restrictions apply. For property inside the City of Tucker, the Building & Permitting Division (opens in a new tab) reviews building plans, issues permits and conducts inspections. The city also reminds homeowners to check applicable subdivision restrictions.
For a project elsewhere in greater Atlanta, confirm the responsible city or county with your builder. Put questions about site preparation, access, utilities and permits on your planning list before you settle on a construction budget.
Leave room for the parts that can change
It is easy to focus on the house itself and overlook where you will live during construction, moving expenses or the cash you want to keep available for everyday life. Write those items down alongside the project budget.
If a material changes, a delay develops or you decide on an upgrade, speak with your builder and lender before approving the change. Don’t assume an added cost will automatically be covered. Ask how changes are documented, reviewed and paid for.
For help organizing your household picture first, try this simple financial checkup.
Your before-you-build checklist
- The property: Do you own the lot, or are you considering one? Gather the address and any available property information.
- The plans: What do you want to build, and which features are essential?
- The builder: Bring the builder’s information, proposed contract and written scope.
- The budget: Identify what is included, what is excluded and how changes will be handled.
- The local requirements: Confirm permits, zoning questions and any neighborhood restrictions with the appropriate offices.
- The draw process: Ask who requests funds, what documentation is needed and how inspections fit in.
- The backup plan: Discuss delays, temporary housing and unexpected expenses.
- The finish line: Ask what must be completed and documented before the home is ready for permanent financing.
You don’t have to figure it all out alone
Bring the idea, the questions and whatever information you have. I’ll help you sort through what needs a closer look and explain the next steps for a financing review through Luminate Bank.
Thinking about building in Tucker or around Atlanta? Reach out to me. We can start with the home you want to create… and work through the questions together.
Art Wood | NMLS #118234
Luminate Bank | NMLS #1281698
Member FDIC | Equal Housing Lender
All loans are subject to credit and property approval. Project and program requirements apply. This educational overview is not a commitment to lend.
Adapted from Luminate Bank’s construction loan overview (opens in a new tab).
