Before Construction Begins

Congratulations on choosing to build your dream home with Highland Homes! Here are some steps required before construction of your home can begin, and what you can expect next.

If you are financing your home purchase:

Get pre-approved

  • Complete a loan application with a Highland Homes Lender Partner or a mortgage lender of your choice 
    • Your lender will provide you with a personalized list of documents required after they review your application, but as a general rule of thumb you will need:
      • 30 days of most recent paystubs
      • 2 months of most recent bank statements (all pages) for all accounts
      • 2 years of W-2’s and 1099’s
      • 2 years of tax returns (including all schedules)
      • Recent copies of any stock brokerage or IRA/401K accounts (all pages)
      • Driver’s license
      • Social Security card
      • If you are self-employed: YTD profit and loss statement
      • If applicable: Copy of divorce decree and/or child support court order
  • Sign and return loan disclosures provided by your lender
    • There are generally three ways you can receive and return documents:
      • Secure document upload or email
      • Face-to-face
      • Fedex/UPS/USPS
  • If you need to have a Power of Attorney sign your closing paperwork, let your lender and salesperson know ASAP
  • Highland Homes will provide your lender with your executed contract and addendums

Finalize your design selections (if applicable)

Loan processing and conditional approval

Your expediency is important to getting your loan processed as quickly as possible!

  • Processing will not begin until everything requested by your lender has been received
  • Your lender may request additional documents during processing and underwriting
  • Your lender will provide you and Highland Homes with a Conditional Approval, outlining what is required for a final approval and closing of your mortgage  

Items that will require a written explanation to your lender

  • Deposits into your bank account other than normal income
  • Payroll deductions other than taxes and social security
  • Derogatory credit such as collections, judgments, delinquencies, and bankruptcies
  • Credit inquiries
  • Employment gaps

Proceeding with the construction of your home

Before we can proceed with construction, we must have:

  • Pre-approval (or conditional approval) from your lender
  • Funds in escrow:
    • CP loan financing - Earnest money deposit 
    • End loan financing - Full down payment

Until you close on your new home

  • DO NOT change jobs or become self-employed without first notifying your lender
  • DO NOT finance or charge any new debt - This includes co-signing for any loans
  • DO NOT enter into any deferred payment plans - These are often available at furniture or appliance retailers. Although you may not be expected to make payments, these will show on your credit report as debt now.
  • AVOID credit inquiries; they can affect your credit score
  • DO pay all bills on time
  • DO keep all personal documents requested by your lender including paystubs, proof of earnest money deposit, bank statements, etc.
  • BE AWARE your lender will re-pull your credit and request updated documents closer to the completion of your home
  • Read more about dos and don'ts after applying for a mortgage >

If you are paying cash for your home:

Before we proceed with construction, we must have:

  • Your lot deposit in escrow
  • Finalized design paperwork (if applicable)
  • Draw addendum based on the final purchase price on your finalized design paperwork
  • Proof of funds to cover the entire final purchase price