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Building 101
Costs
Use the estimated costs below to plan — or contact us so we can help.
| Home Building Costs | |||
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Cost
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Estimated Amount
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| Initial Appraisal | $400-$600+ | ||
| Appraisal Update When home is completed |
$150 If loan-to-value ratio is less than 80 percent. |
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| Survey — Partial or Mtg. Insp. Plat | $250-$300 | ||
| Inspections | $375 Three inspections at $125 each. |
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| Interim Mechanics Lien Endorsement 10A (Chicago Title) up to a $400,000 loan |
$500 for four draws $100 for each additional draw |
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| Date Down Endorsement 10 | $300 Four at $75 each. |
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| Construction Disbursement Draw Fee | $500 Minimum of four at $125 each. |
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| Lien Waiver Exam Fee | $125 | ||
| Owner's Title Policy | Based on home's value Including cost of lot. |
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Documentation
When you meet with us, please bring the following:
- Lot information
- Legal description and lot size
- Closing Disclosure from purchase of lot and Lot Title Policy (if you already own your lot)
- Lot Purchase Agreement (if you're purchasing the lot)
- Set of house plans showing room layout, room dimensions, and exterior views of home
- Construction specifications with the type and grade of materials to be used to complete the home
If you are using a general contractor:
If you are responsible for paying allowance items:
- Owner's Sworn Statement (OSS)
- Signed contract with builder
- Builder's letter stating home will comply with all subdivision requirements and restrictions
If you are acting as your own general contractor:
- Owner's Sworn Statement (OSS)
- Signed, written bid or proposal to borrower from each subcontractor, material supplier, or labor supplier to support costs identified on OSS
The borrower will not be required to sign the bid or proposal until just prior to loan closing. - Letter stating home you are building with comply with all subdivision requirements and restrictions
Documents/Signatures
You'll be signing a lot of documents during the home building process. This chart lets you know which document you'll need and when.
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Document
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Signature Requirement
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| Homeowner/Builder Contract | At application | ||
| Contractors Verified Statement (CVS)* | Builder; prior to appraisal being ordered | ||
| Owner's Sworn Statement (OSS)* | Homeowner; prior to appraisal being ordered | ||
| Bid for costs itemized on OSS | Contractor or laborer providing bid prior to appraisal being ordered | ||
| Partial (or final) lien waiver* | Builder; during the draw process | ||
| Subdivision requirements/restrictions letter |
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| *Must be notarized | |||
Home Lot
If you are…
Already the Owner
You'll just need to provide a copy of the title policy or Closing Disclosure from when you purchased the lot.
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Lot Purchase Date
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Lot Value
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| 1 or more years ago |
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| Less than 1 year ago |
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Buying
When you buy a lot, you will need to provide the signed purchase contract. The cost can be included in your Construction Loan; however, the down payment will need to come from another source, such as liquid assets.
Receiving as a Gift
If you were given the lot, you will need to provide a signed gift letter from the relative(s) who give you the lot. The letter should include the:
- Property being gifted
- Donor
- Donor's relationship to you
- Recipient
The appraiser will provide a separate land value with the appraisal of the home. The lot value will then be considered lot equity, and that equity is used toward your down payment. Ask your CEFCU representative about a gift letter.
Paying on a Lot Loan
You can pay off any lot loan at the Construction Loan closing. Whatever you owe on the lot needs to be taken into consideration when determining the loan amount needed.
CEFCU NMLS ID #407798