Buying a home can and should be a fun adventure. The idea of California residential construction loans can also be stressful, however, if you are unsure of what to expect and what will be involved. Here are some of the steps that you should anticipate when you are approaching the house buying process.


Your first step is going to be meeting with a lender and having them determine how much you can afford. This is how much they will lend to you. While the lender takes into account your income and debts, your other monthly expenses are not calculated to get the number your lender comes up with. You will want to review your budget separately and determine how much you can fit in your budget, since your number and the lender’s prequalification number will likely be different.

The Application

The next step in construction loans is to apply for your loan. This step will likely require extensive paperwork and so you should work with your lender to make sure you have everything completed and submitted properly. Among other things, a title report, appraisal, and inspection will need to be ordered during this step. You will also need to supply a credit report during this phase of the process, although the lender will likely run this report for you.


Your application then goes to underwriting, which means that your loan application will go to the underwriter. The underwriter will then determine whether your application package is complete or whether there is something else that needs to be done before the loan can close. If everything is in order, then you will be able to move onto closing.


Closing is the process of closing your loan and getting to where you can actually move into your home. Closing is typically done at the title company that carries the title to your home but may be done elsewhere depending on schedules and how flexible your agent, lender, and title company are. Both buyer and seller will need to sign the loan closing documents. After this is complete, however, you are officially a homeowner.