When prequalifying your borrower, ask if they already own the land for their new construction project. If they do, encourage them to start vetting builders. If they still need to purchase the land, connect them with a real estate agent partner to help them finance both the land purchase and the construction costs in a single transaction.

Once your borrower has a general idea of what they want in their new home, they should meet with local builders to discuss the details of their dream build. Once they have chosen a builder, the builder's information must be sent to Granite for approval.

To use the One-Time Close New Construction Master List on The Source, the contractor must complete the forms in the One-Time Close Contractor Review Requirements Packet. Granite will then underwrite the contractor to ensure that they are qualified to complete the planned build. This process includes assessing the contractor's construction history, references, background, and credit checks, as well as verifying their licenses and insurance policies. Once the contractor is approved, the loan process can begin. The borrower is responsible for paying a $150 contract review fee each time a contractor goes through the approval process.

Once the contractor is approved, you must submit the following items to Granite for project approval, starting with Form D from the Project Review Checklist. You must complete Form D and return it along with the following documents/information:

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a) Signed Construction Contract: The borrower and contractor must both sign the construction contract, and the total contract amount must match the total cost breakdown.

b) Const Breakdown: Must match dollar amount in the Construction Contract.

c) Set of Plans: One full set for construction and job specifications

d) Appraisal: You will order an appraisal based on the plans and specifications. If you have not yet submitted the plans, please indicate your expected delivery date to the lender in the Expected Completion Date column.

e) Buildings Permits: For conventional loans, permits must be included if any pre-construction activity has taken place.

f) Pre-paid Information: (Pre-paid Accounting Information - Form D1) Improperly documented pre-paids will not receive credit.

g) Draw at Close:  Submit o completed and signed Construction Loan. Disbursemenl Request/ Authorization - Form E, documenting the hard cost draw at close. 

Once the title has been recorded, the initial draw will be sent to the contractor. Congratulations on completing your part in the loan process! Construction can now begin. Your borrower will receive a welcome packet with a draw schedule and more details about what to expect in the coming months.

Granite will oversee the entire construction process and continuously review all aspects of the build, including: 

a) Managing timelines

b) Licensing

c) Title documentation

d) Insurance

e) Inspections

f) Disbursement of funds

g) Mechanic's lien waivers

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Once the construction project is complete, the contractor will provide a Certificate of Completion. UWM will then order a Final Inspection with an appraiser to accompany Granite's final walk-through.

Once the final inspection is passed, your borrower will sign final loan documents authorizing a final construction draw to cover any outstanding costs for your contractor.