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During Construction FAQ
- How do I get money from the construction loan?
- Who watches over the construction of my home?
- What happens if I change portions of my home during my construction, but after I have already signed the loan paperwork?
- What if I want to self-contract my home?
- When will I make loan payments?
- I am buying a lot and building a home. Do I need a lot loan or a construction loan?
Q. How do I get money from the construction loan?
A. From time to time, as your construction progresses, your builder will request your signature on a "draw request" form. When you sign this request, you are telling
Ozaukee Bank that the quality of workmanship is satisfactory and the home is being built according to the plans and specifications. The builder will then take the draw request
to the title company and the title company will facilitate an inspection of your property. The inspector is making sure that the home meets code and the work
has been completed for the funds being requested. The funds then are released to the builder and a draw is made on your construction loan.
Q. Who watches over the construction of my home?
A. It is very important that you take an active roll in the construction of your home. Even though you may not be actually pounding in the nails or pouring the
foundation, we encourage you to stop by the construction site often. You will become very familiar with the progress of your home and should have good communication with
your builder. Please know that your Ozaukee Bank construction team is here to help you when you have questions. Call on us!
Q. What happens if I change portions of my home during my construction, but after I have already signed the loan paperwork?
A. If after the loan paperwork has been signed, you and the builder agree to make some changes to the contract (change orders), any overages that may occur would
be your responsibility. We suggest all changes you make are in writing and that you know the additional costs involved up front.
Q. What if I want to self-contract my home?
A. Ozaukee Bank does have a program for those individuals who may want to self-contract their home. We look carefully at the previous experience of those
self-contracting. These loans have higher closing costs and additional documentation requirements.
Q. When will I make loan payments?
A. During the construction portion of your loan, you pay interest only on the funds drawn. After construction is complete, your loan will automatically go
into principal and interest payments, based on your loan amount.
Q. I am buying a lot and building a home. Do I need a lot loan or a construction loan?
A. If you are purchasing a lot to build on in the future, you would finance it with a lot loan. If you are planning to purchase a lot and start construction immediately, you would want a construction loan.
