Prequalification Process

For a salaried, W2 wage earner you will need to gather the following to provide to your lender:

  • Paystubs for the most recent 30 day period
  • Last 2 years W2 statements
  • Last 2 years tax returns
  • 2 most resent bank statements
  • Your most recent quarterly asset statements (401K, IRA, etc.)
  • Driver’s License
  • Housing Information
    • If you currently own a home and will live in it during your build you will need to provide the mortgage statement, and proof of insurance
    • If you are renting then you need to provide your lease agreement

If you have self employment income solely, or in addition to your wage earner income then you will need to provide a little bit more information:

  • K1 statements for partnership income
  • Last 2 years business tax returns
  • Year to date Profit and Loss statement

Once your loan has been prequalified then you are ready to work with your architect and builder to design your home and budget.

  • Work with an architect to design the house plans
  • Provide plans to the builder to create a budget for those specific plans
  • Once an agreeable budget is in place you will sign a contract with the builder

You will also need to provide information on where the home will be built.

  • If you are purchasing a lot this can be done through the OTC loan
    • Provide the lot contract to purchase it
    • Property survey
  • If you already own the lot
    • Provide the Settlement Statement, or Closing Disclosure when you purchased it
    • Property Survey
    • Mortgage statement if it is currently financed

Once all of the above is finished you will then provide the information to the lender to begin processing your loan.  Obtaining the build information may take some time since your prequalification so you may need to update a few items previously supplied.  Your lender will now have what they need to order the appraisal and title work.  After this data and other necessary documents have been received by the lender then the loan will be underwritten.  After the file has been designated clear to close, you will then finalize the loan by signing closing documents at a title company.  Your transaction is complete and your are ready to start building your home.

​​​​​​What you will need to  start the process