Basically, both approvals are the same on the part of the bank when it comes to the loan application and review of the credit report. However, there is an additional step in the construction process. It comes into play with your bid for construction and the upfront appraisal.
Arvest requests that you get a complete bid from your builder, along with a set of plans for the new home. Next, we submit this information to the appraiser in order to get the value of the completed property before we move forward with the construction loan. We also make sure that your builder is approved through Arvest and has the proper licensing in place to build in the state in which your loan is processed. Based upon the appraisal of the property, we will then use that value to work towards completing your long-term approval on your final loan.
To learn more about Home Loans or to get started with a Construction Loan, contact an Arvest Mortgage Lender today!