What Documents Will My Lender Need for a Construction Loan?
A checklist to gather before you apply, so underwriting doesn't stall your start date.
Construction lenders ask for everything a normal mortgage lender asks for, plus a full package on the house and the builder. That second half is what surprises people, and it's the half that most often holds up a file.
About you
- Two years of tax returns, W-2s or 1099s
- Recent pay stubs
- Two to three months of bank and investment statements
- Photo ID and Social Security number
- Documentation of any other income: bonus, rental, retirement, support
- An explanation for any large or unusual recent deposit, which lenders always ask about
- If self-employed: business returns, profit and loss, and often a CPA letter
About the house
- Final plans and elevations
- A detailed specification of what's being built and to what level
- The signed build contract with the price
- The cost breakdown or schedule of values the draw schedule will run from
- Any change orders executed before closing
This is why lenders want your plan settled before they'll underwrite. They're lending against a completed-value appraisal, and an appraiser can't value a house that isn't specified. See how the loan amount is calculated.
About the land
- The deed, or the purchase agreement if you're still buying
- Legal description and parcel number
- Survey
- Payoff information if there's an existing lot loan. See lot loans
- Confirmation of utilities, or septic and well approvals where applicable. See well and septic
About the builder
Most construction lenders approve the builder as well as the borrower, and will ask us directly for insurance certificates, references and financial information. This is normal, we're used to it, and it's one more reason to involve your lender early rather than late.
What to do before you apply
- Don't open new credit or finance a vehicle. A new account mid-underwriting can undo an approval.
- Don't move large sums between accounts without being able to document where the money came from.
- Get organized in one folder. The single biggest cause of slow underwriting is documents arriving in pieces over three weeks.
- Ask what their turnaround is at each stage, so your build schedule reflects reality.
See how construction financing works and what lenders evaluate.