The appraisal is on plans
A construction appraisal values the finished home based on plans and specifications. In mountain markets with limited comparable sales and demanding site conditions, that appraisal deserves attention early.
The builder gets underwritten too
Lenders review the builder's experience, licensing, insurance and the contract itself. A well-documented builder package moves the file; a thin one slows it down.
Draws and inspections
Funds release in stages tied to completed work, with inspections between draws. Aligning that schedule with your builder's cash-flow expectations before construction begins prevents most of the friction I see.
Getting to permanent financing
Some structures convert automatically at completion; others require a separate refinance. Knowing which one you have, and what qualifying looks like at the end, belongs in the plan from day one.
Common questions
- Can I include the land purchase?
- Often yes, and how the land is treated depends on whether you already own it and how it was acquired. Bring that detail into the first conversation.