Develop A Budget
Similar to any big project you enter into, the first step to building your new home is developing a budget. It’s ideal to enter into the process with a reasonable budget that factors in changes that may arise. When you develop a budget first, it will allow you to do some research and really understand what the process entails from here on out.

Choose a Home Builder
Choosing the right home builder will ensure the successful completion of your home project so you can relax knowing your dream home is in the right hands. It is your responsibility to choose the right builder, so verify the one you choose is licensed, reputable, and proven.

Meet with Builder
The first step to designing your perfect home is to meet the builder who will help design/select the floor plans that will turn your dream into a reality. Discuss your ideas and collaborate to find the best way to make all of your visions come to life before your eyes.

Check References
Check the references of the contractor you choose before the building process commences. At Pablo Creek, you’ll find that our hand selected builders are both reputable and successful in fulfilling the needs and dreams of homeowners across Northeast Florida.

Mortgage Financing
After you’ve met with your builder and selected plans, it’s time to apply for a mortgage that will turn your blueprint into your new home. When you meet with your potential loan officer, you will need to provide the following: signed building contract, lot purchase contract, final plans and specs, earnest money proof, and current boundary survey.

Acquire Project Insurance
After your loan has been approved and before building commences, it’s important to insure the project. Generally, standard insurance policies for the home building process includes Builder’s Risk, Homeowner’s with a Builder’s Risk Rider, Homeowner’s, Flood, General Liability, and Worker’s Compensation.

Closing
After you’ve settled all of the necessary documents and policies and designed your floor plan – the real adventure begins. The closing is one of the most important elements to the process. At the closing, the borrower and the builder will sign required documentation, the borrower provides the down payment, and any start-up expenses will be handled.

Escrow
When the loan is ready to convert to the permanent phase, the process is officially in escrow. The appropriate amounts for tax and insurance escrows are then collected from the Borrower. At this time, work on the home must not be started and materials must not be delivered to the site prior to loan closing and the recording of the security instrument.

Building
Now, it’s time to start building your dream home. Construction funds will be disbursed by your loan company. At this time, it’s important to follow up with both your mortgage company and your builder throughout the process to ensure that you’re informed of any modifications that may arise during the build.

Stay in Contact
Generally, 30 to 45 days before the scheduled conversion from the construction phase to the permanent phase, it’s time to discuss converting your loan from construction to permanent. Your bank’s requirements may differ, but generally you will need to ensure the project is 100% complete, all final draw documents have been provided, and you execute the necessary modification documents.