Prepare the Land, Builder, Budget and Financing Before You Build
Construction financing works best when the property, plans, builder, contract, budget and borrower are reviewed together.
This planning center helps you identify the major decisions and documents before they become expensive construction delays.
Main Planning Paths
Where you are in the process determines what needs to be reviewed first. Choose the path that best describes your situation.
I Already Own the Land
Review land value, existing liens, plans, builder and expected project cost. Land equity may satisfy some or all of the required equity contribution.
I Am Still Shopping for a Lot
Compare a standalone lot loan, home equity and moving directly into construction financing. Each path has different timing and qualification implications.
I Have Plans and a Builder
Review the contract, specifications, budget, allowances, contingency and projected value before signing the final construction contract.
I Am Comparing Build Options
Compare custom construction, completed-home purchases and different contract structures to identify the best path for your situation.
Construction Planning Framework
Five areas that must be reviewed before a construction loan can be finalized. Each builds on the previous one.
Land
- Ownership
- Access
- Utilities
- Zoning
- Site work
- Existing liens
Builder
- Experience
- Licensing
- Insurance
- Financial review
- Project history
- Draw expectations
Plans and Contract
- Plans and specifications
- Fixed-price or cost-plus structure
- Allowances
- Change-order process
- Completion timeline
Complete Budget
- Land
- Hard construction costs
- Site work
- Utilities
- Permits
- Contingency
- Financing costs
Appraisal and Financing
- Completed-value appraisal
- Loan-to-cost
- Loan-to-value
- Equity
- Cash requirement
- Construction interest
Download These Before Your Planning Review
Use these guides and forms to prepare for your construction planning review. They help organize the project decisions, budget details, material selections, and documentation needs before they become delays.
Construction Cost Breakdown
A line-item cost breakdown template covering hard construction costs, site work, permits, allowances, and contingency. Use this to build a complete project budget before your planning review.
Download Cost BreakdownDescription of Materials
The standard materials specification form used in construction lending. Documents the finishes, fixtures, and materials selected for the project — required by most lenders as part of the appraisal package.
Download Materials FormConstruction Loan Handbook
A practical guide to organizing your lot, builder, plans, construction budget, draw process, and financing decisions before you begin a custom home project.
View Handbook PageConstruction Readiness
These five planning categories — not an approval score — indicate how prepared a project is for construction financing. Each links to the relevant resource.
Land ready
Ownership, access, utilities, zoning and existing liens reviewed
Builder ready
Experience, licensing, insurance and draw process confirmed
Plans ready
Specifications, contract structure and allowances defined
Budget ready
Complete project cost including contingency and financing costs
Financing ready
Equity, loan-to-cost, cash requirement and appraisal reviewed
Choose the Next Construction Planning Question
Start with the decision that is still open in your project, then return to the overall construction plan once the details are clearer.
I need to understand the construction financing structure.
See how a single-close construction loan moves from closing through draws and conversion.
Explore this questionI am buying land before I build.
Compare the planning questions behind a standalone lot purchase and a future build.
Explore this questionI already own land and want to understand potential equity.
Review the tradeoffs between existing home equity, a lot loan, and a later construction transaction.
Explore this questionI am comparing a fixed-price and cost-plus contract.
Understand how the builder agreement changes documentation, budgeting, and lender review.
Explore this questionI need to understand draws, reserves, and contingencies.
Work through how construction funds are released and why a complete budget needs room for change.
Explore this questionI am considering an owner-builder or barndominium project.
Review the appraisal, builder, plans, and residential-use questions before committing to the project.
Explore this questionReview the Project Before Signing the Final Construction Contract
A planning review covers land, builder, contract, budget and financing before you commit. It is the best way to avoid expensive surprises during construction.
Start My Construction ReviewMatt Siket · NMLS #442558 · Liberty Federal Credit Union, NMLS #518136 · Equal Housing Lender