New Home Construction Phases and Draws | New Homes Market Center
When you close on your construction loan, the lender will not hand you a check for the whole loan amount. The lender distributes draws – pre-determined, scheduled amounts based on construction progress. Your builder requests draws for each phase of new home construction. The lender usually releases the draw for each stage of construction once the inspector approves it. The goods news is that you only pay interest on the drawn amount, so you are not paying the full payment until you move further into the project. Some lenders may set up allowances that can cover some of the interest payments as well, so you may not need to make full payments until you close.
Phase 1: Foundation
Once you receive approval from your lender, you enter Phase 1 of new home construction. During this stage, your lot is cleared, excavated and then prepared for the pouring of foundation. This phase also includes a site survey, priming and framing the foundation, and installing the underground utilities. Then installation of your septic, sewers lines and vapor barriers takes place. The city sends an inspector for approval of these items and once approved, the foundation is poured.
Phase 2: Framing
This is includes framing walls and trusses and installing roof sheathing. Once complete, another city inspector should review and approve these items.
Phase 3: Roofing
This stage is where your house really starts to take shape. The builder cornices all windows, exterior doors, siding and trim. Then they install the exterior sheathing, shingles and roofing system.
Phase 4: Sheetrock Prep
This includes the exterior finish and installation of any masonry, wood or siding and painting of the exterior. Rough-in installation of the plumbing, water, sewer systems and mechanical systems such as electrical, venting and furnace. Plumbing, HVAC/air conditioning, water heater installation also occurs during this phase. There are city inspections for plumbing, electrical, frame and mechanical.
Phase 5: Sheetrock
During this phase of new home construction the contractors add insulation, and they dry wall, tape, float and texture the interior walls.
Phase 6: Trim
It’s starting to all come together with the installation of interior doors, moldings and staircase balusters/railings.
Phase 7: Cabinetry and Paint
Hey this looks like your dream home when they add the cabinetry, counters and wall tiles. Bathrooms are taking shape too with installation of the mirrors, baths and shower enclosures. Once most of the fixtures are in, painting of the interior walls takes place.
Phase 8 Flooring and Finish up
In phase 8, the floors go in along with the driveways and sidewalks. This is the stage where the contractors work to finish all the electrical, mechanical, HVAC systems and testing before the city performs the final “Certificate of Occupancy” inspection.
Phase 9: Final inspection and Acceptance
Here’s the best stage…the city performs the final inspection and gives the approval once the ceiling insulation is complete. Landscaping and cleaning are complete before the your final walk through. At your walk through, you and the builder examine every aspect of the home and create a punch list of items needing repair. With this list, the builder then completes the home and makes it ready for move in. Once your home is ready, you complete the final close on your loan and then move in!