couple planning a home construction renovation

Building Your Perfect Home

If you’re looking to finance the construction of your new home, a construction-to-permanent loan from United Community allows you to build your future with less worry—and fewer closing costs.

Our mortgage experts will walk you through every step of the process, and they’ll help you find the exact loan options that will be best for you and your home. Here are the steps you can expect:

The Application Stage

The first step in the process is to meet with your mortgage loan originator (MLO) to discuss your loan options and get you prequalified. Your MLO will guide you through the application process and help you make sure you have all the required information to ensure a complete application. There are several steps that comprise the application process, including:

1. Initial disclosures

These include the typical disclosures required for any loan as well as some specialized disclosures that are specific to construction-to-permanent loans.

2. Processing

Once the initial disclosures are completed and your MLO has collected all the required documentation, the loan is sent to be underwritten. A processor will also be assigned to the file to collect any documents that are required by the underwriter to make it a complete file.

3. Appraisal and Title Work

As the file heads to processing, we will order an appraisal of the project and title work on the property. The appraisal is done using the house plans and specifications provided by you or your builder, along with the contract for the build and survey of the property. The appraisal is done as though the house is completed, subject to completion of the house, and should give a good idea of the expected value of the finished product (house and land). The title work is done by an attorney’s office or title company, depending on what state your property is located in. This shows the title to the property is clear of any liens and has a clean chain of title, which means it has properly changed hands over the years.

4. Final underwriting and closing

Once all of the above steps are completed, the file is sent to the underwriter for the final stamp of approval. Then, we’ll set the closing time and date. You’ll be given a final closing disclosure which shows the details of the transaction, including any money due from you, and your MLO will go over the details with you to get you ready for closing. You will need to wire any required funds to the closing agent prior to closing. Once you’re closed, you’re ready for the construction phase—where the real fun begins!

The Construction Stage

During this phase, you’ll be directly communicating with your builder and a construction administrator, who orders progress inspections to ensure the work is complete and disburses the money for the completed work. A week or two after your closing, you’ll receive your login credentials for the United Construction Management System, which allows you and your builder to see the breakdown of what money has been spent and what is available.

5. Inspections

When sufficient work has been completed, and the builder is ready to collect a draw, we will send out an inspector. They will take a close look at the work completed since the last inspection and prepare a detailed report to document the progress. This process should last about one to three days in most cases. The completed inspection report will then be uploaded to the United Construction Management System, allowing you and your builder to view the inspector’s documented notes.

6. Disbursements

Once the completed inspection is uploaded, the construction administrator will determine how much money is available to be drawn. This is determined using a draw schedule form that the builder completed during the application/processing stage. The draws can be sent to you or your builder (you’ll make that choice with your builder during the application stage). This is something you may want to discuss in more detail with your loan originator so you can more fully understand this process.

7. Payments During Construction

You will not make regular mortgage payments during the construction phase. You will only pay interest each month based on the amount of money you’ve drawn from your construction loan. You will receive a statement each month showing how much money has been drawn and the corresponding interest due.

The Modification Stage

Once your home is complete, you’ll receive the Certificate of Occupancy. You’ll be able to close out your construction loan, and your new loan will be assigned to your loan originator and a modification processor to handle the final details below:

10. Modification Signing

This is the last part of the process. At the modification signing, you’ll sign your final documents. You’ll also pay some money here—the money due will include the leftover interest on your construction loan, interest from that day until the end of that month, and the money needed to set up your escrow account. If you choose to buy down your final rate, you will do that here as well.

8. File Update with Modification Processor

The modification processor is responsible for collecting a few updated documents to freshen up your file. They’ll also order a final inspection for the appraisal if it is less than 18 months old, or a new appraisal if it is more than 18 months old.

9. Meet with Mortgage Loan Originator

You’ll finish with the person you started with. The loan originator will look at interest rates and, if you’re eligible, help you through the float-down process. They’ll also go over any final details with you and set up your modification signing.

Contact Your Local Lender

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Brad Morrell

Mortgage Loan Originator

770-490-9819 Email

NMLS# 2008992

Christy Phillips

Mortgage Loan Originator

(704) 200-6465 Email

NMLS# 62752

Conor Fitzpatrick

Mortgage Loan Originator

843-839-6806 Email

NMLS# 1553416

Jay Craig Wright

Mortgage Loan Originator

727-385-0879 Email

NMLS# 209357

Juan Jaureguizar

Mortgage Loan Originator

305-421-2273 Email

NMLS# 713131

Kelly Calhoun

Mortgage Loan Originator

423-593-3648 Email

NMLS# 165099

Kim Walker

Mortgage Loan Originator

706-781-5003 Email

NMLS# 1205994

Lauri McCray

SVP - Director of Mortgage Operations

770-794-3478 Email

NMLS# 2373752

Luke Daniels

Mortgage Loan Originator

NMLS# 459826

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