Residential Construction Loans
Building a new home can be challenging! With the expertise from our residential lending team and the broad range of loan options available they can help make this process become a seamless and enjoyable experience.
Call a residential real estate expert today, Barbara Sadler 520-797-4169.
Product Features
Builders
- Construction guidance lines available to provide for quick processing time
- Fast turn around time on all draw requests – handled locally
- Established builder relationship provides for minimal upfront documentation
Individuals
- General Contractor or Owner Builder
- Free checking account
- Interest only payments during the construction phase
- Obtain your permanent financing from Commerce Bank and save on closing costs
How this product works
Making dreams come true one step at a time
Once you have gathered the information to support your loan application you will want to contact a loan representative to start the financing process. Your request will be reviewed by a construction lending officer and he/she will order the property appraisal to obtain a final as if complete value and a preliminary title report to ensure all encumbrances and liens are cleared prior to starting construction. Once this information has been obtained the file will be submitted for underwriting. Upon approval your loan docs will be prepared locally and you will close with the title company.
You are now ready to start building
As draw requests are needed you will contact your loan officer here locally and provide the appropriate lien waivers from the previous draw request prior to obtaining the funds for the next one. The loan officer will send out an inspector at his/her discretion prior to committing to the release of these funds.
Completion
Once your home has passed final inspection you will be ready to contact our mortgage department to update your construction loan file and obtain permanent financing.
Information Needed
- Builder contract
- Builder cost breakdown
- Copy of builder’s license or resume if owner builder
- Plans and specifications
- Completed application
- Purchase contract for land or copy of settlement statement if already owned
This is the information you should have at hand when you apply for your construction loan. This is a general list, and we’ll let you know of any additional information we may need to make your loan application complete:
Income/Asset verification:
Salaried Borrowers
- Pay stubs for the most recent 30-day period
- Most recent W-2 statements for all borrowers
- Deposit Verification
- All pages of checking and savings account statements from the most recent 30-day period
- All pages of asset account statements, including money market funds, mutual funds, stock accounts, IRAs, CDs, etc., from the most recent 30-day period.
Self-Employed Borrowers
- Complete signed tax returns for the last two years, including schedules, statements and K-1’s and/or a copy of the filed extension if applicable
- Year-to-date profit and loss statement, if beyond June 30th
- Deposit Verification
- All pages of checking and savings account statements from the most recent 30-day period
- All pages of asset account statements, including money market funds, mutual funds, stock accounts, IRAs, CDs, etc., from the most recent 30-day period.
Miscellaneous Borrower Documents - If applicable
- Year-to-date profit and loss statement, if beyond June 30th
- Divorce decrees, child support agreements, or separate maintenance agreements
- Copies of any leases and two years of federal tax returns on any rental properties you own
