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Discussion Starter · #1 ·
I am in the process of putting together a building proposal for bank financing and was curious of others experience with this.

This will be the my first new build and have no experience with submitting a proposal to a bank.

I am a GC but primarily do remodeling, additions, kitchens/baths, etc.

The build is a house for my family, not for a client.

I do have prior experience in the retail mortgage industry and know that underwriters can be picky, so I don't want to submit a proposal that is lacking.

I'm curious as to how everyone itemizes their proposals. Do you include copies of estimates from all your subs or do you just put their numbers listed in your proposal?

Absolutely any help is appreciated. Thanks!
 

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does the bank have someone that can advise you? Like the loan officer, etc. They should be more than willing to help you. If not, different bank
 

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Discussion Starter · #3 ·
The only info I've got from my loan officer is a sample draw schedule.

He did tell me to provide as much detail as possible for the finishes, etc. so the appraiser can better judge value.
 

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You don't show your location. I am in Ontario. When I built my house 10 years ago, I went to the bank to get a builders loan. I had my property paid for, driveway in, well drilled. I had about 40 grand cash and good credit. The bank wouldn't give me a builders loan as they were not interested in half finished houses. Instead they gave me a 50000 dollar line of unsecured credit. Between that and my business line of credit, I got the house built. They then gave me a mortgage for the house without any trouble. Even though I have been in business as a contractor for many years, I found the bank not willing to help me. I robbed peter to pay paul until it was done, then they tripped over themselves to give me a mortgage. What a pita.
 

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Particulate Filter
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You don't show your location. I am in Ontario. When I built my house 10 years ago, I went to the bank to get a builders loan. I had my property paid for, driveway in, well drilled. I had about 40 grand cash and good credit. The bank wouldn't give me a builders loan as they were not interested in half finished houses. Instead they gave me a 50000 dollar line of unsecured credit. Between that and my business line of credit, I got the house built. They then gave me a mortgage for the house without any trouble. Even though I have been in business as a contractor for many years, I found the bank not willing to help me. I robbed peter to pay paul until it was done, then they tripped over themselves to give me a mortgage. What a pita.
I think it will be much harder now.
 

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When I built on spec I would send out two packages. One to the lending officer at the bank and one to the appraiser. The packages would contain the prints and specs for the home I was proposing to build, and the price I was planning to list it for. Generally, the bank would finance 80% of the project, meaning you needed cash to put down.
 

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diplomat
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The more cash you have, the better. If you have operating capitol so the value of the structure is always greater than your draw schedule, that will help. I did 2 specs last year. I was going to do one but they gave me 4.5% so I did two.
 

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Discussion Starter · #8 ·
Thank you all for the replies. My bank will finance 80% LTV and we have tried to plan for this accordingly.

My question isn't necessarily in regard to underwriting guidelines as they relate to applying for a construction loan. I am more curious as to the format in which some of you have submitted your build proposal.

Do I need to submit copies of all the estimates for the subcontractor work or just include those numbers as part of the larger total bid?

I use spreadsheets for my estimating and have put together a comprehensive worksheet with all of my prices for the project, have blueprints, take-offs from a couple lumber yards, proposals from some of the subs as well. Do I just submit all of this with the total $ requested?
 

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Write it up just as you would for a client remodeling their kitchen, just on a larger scale. When I did my house I treated it as I was doing a regular job, just a lot larger than I was used too. Finish schedule should be included with prints but if not write up your own. You can probably google sample schedules to get a guideline. But as for payments plan it out accordingly so you don't run short before the next payment. The bank will have someone inspect before checks are cut.

It's one of those only give them as much info as they ask for. Don't be too detailed because if something happens or changes then you'll have explaining to do. Be general and broad, if they ask for more detail then give it, but only if asked.
 

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...only give them as much info as they ask for. Don't be too detailed because if something happens or changes then you'll have explaining to do. Be general and broad, if they ask for more detail then give it, but only if asked.
+1. If you don't supply enough detail, they'll ask for more.
 
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