THE PROCESS
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PHASE I: PreQualification
- Study OBA web site
and document any questions you may have. (Review FAQ
page.)
- Fill out Contact
Us form. A Construction Support Specialist will answer any
questions you may have.
- Fill out Feasibility
Analysis Form. Form is submitted to Lender to
determine if financing is feasible. OBA should have an answer
for you within 24 to 48 hours.
- If deemed feasible
and you are ready to proceed,
fill out Full Pre-Qualification Application. Please
keep in mind the Lender is not only pre-approving you for your construction loan but also for your take-out loan
once your home is complete (permanent mortgage).; therefore, processing may take
3 to 7 business
days.
- OBA advises you
of full pre-qualification results.
- Within 72 hours
of full pre-qualification, OBA's Lender sends you a bank package
including their good faith estimates/disclosures.
- Upon receipt of
Bank package, contact Lender directly with
any questions or clarification.
- Sign Bank's
documents and return directly to Lender.
- Construction Loan
Process begins.
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PHASE
II - Appraisal and Construction Budget
- Contact your
local building department and request a "builders
packet" stating you are acting as your own General
Contractor and building your own home. Review building permit requirements.
- Order house
plan. Send one set to OBA and one set to the Lender.
- If you do not own
your land, your search for a suitable lot should be underway.
- Sign Land
Purchase Agreement. Allow 45 to 60 days for
closing.
- Send OBA a copy
of your Land Purchase Agreement.
- Upon receipt of
house plan and land purchase agreement, OBA will order an appraisal
and title work. If you have a particular appraiser and title
company you'd like to use, send contact information to OBA.
- OBA will send you
our budget template to start collecting bids.
- Collect hard bids
from subcontractors as indicated on the budget template and fax to
OBA.
- Appraisal is sent to
Lender for approval. (Keep in
mind, your budget
is based on 85% of the future appraised value.)
- If applicable,
OBA provides a firm price for a panelized framing package to include
in your budget.
- OBA's Service or
Materials Contract is sent for your signature.
- Budget is submitted
to Lender for review and approval.
- Finalized
budget is sent for your signature.
- Return OBA's signed
contract.
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PHASE
III - Processing/Underwriting
- Secure Builder's Risk Insurance and
send Lender a copy of the binder.
- File is
submitted to Underwriting.
- Closing date set at your local title company. Your lot is paid off
and a check issued to you for any reimbursable
items that were included in your budget. OBA's fee are
funded at this time.
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PHASE
IV - Construction Begins
- Funds available
and construction begins.
- Draw Requests
submitted to OBA for review and forwarded to the Bank for funding.
- OBA advises you when draws fund and will send updated disbursement worksheets
throughout your project.
For those purchasing
a panelized framing package, the following applies:
- 25% of Package Price
is disbursed at closing and production begins.
- Copies of shop
drawings emailed for approval.
- Upon approval,
delivery timeframe set.
- Notification of
Delivery emailed for approval.
- Customer submits
draw request to Lender for balance due along with picture of
completed foundation for verification.
- Materials
delivered to job site. Remaining balance due is disbursed
with signed Bills of Ladings.
AND
REMEMBER....
The entire OBA
Team, Construction/Technical Support, Draw and Administrative
Departments will be assisting you throughout the construction process
to when you modify your construction loan to your permanent mortgage.
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