Present a clear project overview
A useful construction financing overview explains what you plan to build, where the project is located and how you expect to complete it. Include the property type, proposed scope, land ownership or purchase status and the intended exit. Keeping these details together helps make the initial discussion productive.
Organize land and project documents
Gather available land purchase information, plans, specifications and permit details. Be clear about which approvals have been obtained and which are still pending. The financing team can identify the documentation required for the program and stage of construction.
Build a realistic construction budget
Separate major construction activities and include supporting contractor estimates. Explain the proposed schedule and identify expenses that occur before work begins. Allow for uncertainty in costs and timing, and discuss which expenses the loan may cover.
Ask how construction draws work
Construction funding may be released in stages as work is completed and verified. Ask about the draw schedule, inspection process, required evidence and expected turnaround. Understanding the process helps you plan payments to contractors and identify cash requirements between draws.
Connect the schedule to the exit
Explain whether you intend to sell the completed property or refinance into longer term financing. Review how your construction schedule fits the proposed loan term and discuss what happens if completion takes longer than expected. Final loan terms and funding requirements are subject to project and borrower review.
Review the program details
Explore our new construction financing programs and construction application. If you are unsure which information to prepare first, contact the IRF team.
