CTP checklist

The following is a brief explanation of the items on the Construction Checklist. If you have questions remaining please contact your White Star Mortgage Account Executive:

I. Soils Report: Soils reports need to be reviewed by The Construction Lending Department for special “footing or foundation requirements”. The Construction Lending Department Manager may waive soils reports, but if the property is located in an area that has unstable soil, hillsides, rocks etc., a soils report will be required.

II. Plans and Specifications: One complete set of Plans and Specifications signed by both the Borrower and General Contractor/Builder.

III. Current Lot Survey: Through the life of the loan, three surveys will be required. The first is the “current lot survey”, which sets outs the boundaries of the property, which assists the General Contractor/Builder in building the house within the property lines avoiding construction on any “easements” or property lines. In states that do not use Surveys, a plot plan needs to be submitted; a Foundation Endorsement will be required on the first draw request; and; a Final Endorsement will be required before the final disbursement. BORROWERS HAVE THE OPTION OF DEPOSITING COSTS FOR THE REMAINING (TWO AFTER CLOSING) SURVEYS/ENDORSEMENTS OR PAYING FOR THE SURVEYS/ENDORSEMENTS ON AN AS-NEEDED BASIS. Supplied at closing.

IV. CC&R’s: If the proposed home is being built in a Master Planned Community or Planned Unit Development where there is an active set of CC&R’s (PUD Doc’s), they will need to be submitted.

V. Proof of Land Ownership/Evidence of Land Acquisition: The settlement statement showing the purchase price needs to be submitted unless the proposed loan is going to payoff the land, then the lot sales contract will be required.

VI. Complete Legal Description/Title Work: A copy of the title policy for this loan transaction needs to be submitted PRIOR TO LOAN CLOSING.

VII. Contract Between the Borrower and General Contractor/Builder: Occasionally, if a loan is not in place, a contract has not been signed. If this is the case, a “proposed contract” will suffice. If the General Contractor/Builder and loan is approved, an actual contract will need to be submitted before loan closing. The actual contract must match the proposed contract. (NO COST PLUS CONTRACTS ARE ALLOWED)

VIII. Cost Breakdown: All cost breakdowns submitted SHOULD be on the cost breakdown form. This form must be signed by the General Contractor/Builder only. This form needs to be completed as follows:

IX. Heading: The Borrower and General Contractor/Builder’s names, addresses, telephone numbers, job site address, square footage of the proposed structure and loan number. ( underwriter will assign a loan number to all loans).

X. Section-A-Land Costs: Only include cost of the land if it is part of the contract or a separate contract to purchase.

XI. Section-B-Indirect Costs: All costs considered “soft”, including but not limited to overhead, G&A, cleanup, insurance etc. These costs are paid on the same percentage of completion as the loan funds are disbursed.

XII. Section-C-Offsite Costs: All costs for work completed on the “lot”, underground work etc., plus any work required by municipalities or utility companies.

XIII. Section-D-Onsite/ Building Costs: All costs associated with the actual construction of the house, (sticks and bricks).

XIV. Signature Block: Only the General Contractor/Builder need sign and date.

XV. Building Permits: Actual copies of permits need to be submitted before the first draw.

XVI. Appraisal Work: A copy of the appraisal that reflects the “as-is” value of the lot and the “completed” value of the proposed Single Family Residence.

White Star Mortgage - 125 Town Park Drive Suite 300 - Kennesaw, GA 30144
Office Phone: (770) 973-0629 Fax: (770) 200-3720 Cell Phone: (770) 713-1662