At North Shore Mortgage, we know how exciting and stressful building a home can be! We make the loan process as simple as possible so you can focus your energy on important things, like choosing the right builder, and the right neighborhood!
Choose a plan and a builder
North Shore Mortgage requires a General Contractor
Choose a Loan Type and Apply
Our Mortgage Loan Originators will be happy to help you select the right type of loan, and you can APPLY ONLINE to get pre-approved. The construction loan application process takes approximately 10-14 days.
Construction Loan Checklist
- Full set of construction plans and bids
- Description of materials signed by Contractor and Applicant
- Signed contract between Contractor and Applicant
- Signed sworn construction statement
- Purchase Agreement for land or Warranty Deed if land is previously owned. If purchased in the last year, verification of purchase price is required.
- Check for the cost of appraisal
- Once footings are in place: Order a plat sketch from the title company and they will supply it to North Shore Mortgage.
Close on Construction Loan
Closing takes place at the Title Company’s office. You will need a certified check for the downpayment and closing costs. You will sign various documents including Closing Disclosure, Note, and Mortgage. Once all the documents are signed you may begin building your home!
Once you close on the Construction Loan, you have 12 months to complete your home. Your builder should give you regular invoices to sign during this time. The title company will approve the invoices, submit them to us, and we will pay the builder for their work. You will receive statements during this time. There will also be regular inspections by the appraiser during the construction process that you will pay for. During the construction phase, the interest rate on your loan is at a fixed rate and you only pay interest as the funds are used.
Once your house is complete, all funds from the Construction Loan are disbursed, and it’s been 12 months or less since closing on the Construction Loan, it is then refinanced to a fixed rate Permanent Loan through a second closing.
At this point it’s time to move the furniture in!