Frequently Asked Questions

Construction Financing Questions and Answers

1. How can I find out how much I can afford?
Call the loan officer that was referred to you by your Keystone Custom Homes representative. To calculate your affordability analysis, we will need to know your current gross income and monthly debt payment requirements. In order to complete the pre-approval, we will also need to order your credit report, with your authorization.

2. When should I start the application process? How long does it take to get approved?
We always suggest that you start the mortgage application process immediately. This allows you and us plenty of time to get everything completed to avoid any last minute issues. After we receive your formal application package, a loan decision is normally completed within 72 hours. Once you're approved, it usually takes about 30-45 days to clear conditions for loan settlement.

3. After the loan approval, what comes next?
The most important step will be ordering your appraisal. The appraisal tells us the market value of the home based on current real estate market conditions. Appraisers are independent parties, not employees of American Professional Finance. Construction appraisals normally take 2-3 weeks to complete.

4. What does the appraiser need to start on the appraisal?
Before the appraisal process can begin, the appraiser will need a copy of the plans, a copy of the contract from the general contractor dealing with the actual work to be done and the home specifications. Keystone Custom Homes takes this responsibility for you and ships them directly to us to save you time.

5. At what point can I start to draw funds from my construction loan?
No funds can be disbursed until you have closed on your loan. This initial closing is when you sign your note and mortgage, prior to starting construction. Draw checks cannot be issued until the appraiser provides verification that the schedule work has been completed. Your or your contractor should call at least 5 days prior to scheduled work completion to order draw inspections.

6. How will the lender disburse funds to pay the builder?
The lender, as specified by the draw schedule, will disburse funds directly to the builder. This step saves you from having to receive the check and deliver it to Keystone in a timely fashion to avoid any payment penalties. Before a draw is disbursed, an inspection is completed by a third party firm to ensure all work required for that draw has been completed.

7. When my new home is completed, how does the loan convert from a construction loan to a regular mortgage?
When your home is complete, you will receive your last draw check. Then, you will be sent a modification package to be completed in the comfort of your home. When it's sent back to American Professional Finance or our primary investor, American Home Bank, N.A. we will convert your loan to a regular mortgage.

Please contact your mortgage representative for answers to your questions.
We want to make sure you understand the process.