Construction & Renovation Loans: Step by Step

uilding a new home or renovating the one you have takes more planning than a standard purchase. The money is released as work gets done, and the lender reviews the plans, the budget and the builder along the way. Here is how the process usually works, in six steps.

Through Ameris Bank. Availability and terms vary.

Jill Burgess, NMLS #100425, VP, NC Mortgage Production Manager at Ameris Bank, has been originating mortgages since 1990 and has originated more than $2 billion in mortgage loans. Call (336) 740-9068 to talk about your project.

The 6-step timeline

Step 1: Pre-approval

Start with a conversation with Jill. You'll review income, assets and credit so you know what you can afford for land, construction or renovation costs, and the finished home. Getting pre-approved before you sign a building or remodeling contract helps keep the budget realistic.

Step 2: Builder or contractor, and plans

Choose a licensed builder or contractor and pin down the plans, specifications, budget and schedule. The lender reviews these before closing, so a detailed, signed contract and a line-item budget help keep things moving.

Step 3: Appraisal of the planned home

The appraiser estimates what the home will be worth once the work is done, based on the plans and specifications. That planned ("as-completed") value helps set how much can be borrowed.

Step 4: Closing

You sign the loan documents at closing. With a construction loan, closing happens before the work starts. Money isn't paid to the builder all at once. It's set aside to be released in stages.

Step 5: Draws during the build or renovation

As each stage is finished, the builder or contractor requests a draw. An inspection usually confirms the work is done before funds are released. Keep in touch with your builder and with Jill so draw requests, inspections and any change orders stay on track.

Step 6: Final inspection and move-in

When the work is finished, a final inspection confirms the project is complete, and any local approvals (such as a certificate of occupancy for new construction) are in place. Then the final funds are released, and you move in.

Program details change; contact Jill for the most current information.

Is a construction or renovation loan right for your project?

These loans can fit buyers building on their own lot, buyers working with a builder, and homeowners planning a major renovation. Every project is different. Call Jill at (336) 740-9068 to talk through your plans, timeline and budget. You can also see all loan programs on our Services page.

Real estate agents: see our Real Estate Agent Partner Resources page.

Frequently asked questions

Who offers these construction and renovation loans?

Jill Burgess helps buyers and homeowners explore construction and renovation loan options through Ameris Bank. Ameris Bank is the lender. Availability and terms vary, so call Jill at (336) 740-9068 for current details.

What is a draw?

A draw is a payment released from the loan as work is finished. Instead of paying the builder or contractor the full amount up front, money is released in stages, usually after an inspection confirms the work for that stage is done.

How can a home that isn't built yet be appraised?

The appraiser estimates what the home will be worth when it is finished, based on the plans, specifications and budget. That planned value helps set how much can be borrowed.

Do I need to choose my builder or contractor before I apply?

Usually, yes. The lender reviews the builder or contractor, the plans and the budget before closing, so it helps to have them lined up early. Ask Jill what your loan will need.

Does Jill work outside North Carolina?

Jill is licensed in North Carolina, Virginia, South Carolina, Georgia, Florida, Alabama and Tennessee. Call (336) 740-9068 to ask what's available for your property and state.

Jill Burgess, NMLS #100425, VP, NC Mortgage Production Manager at Ameris Bank (NMLS #408099). Ameris Bank is the lender; Mortgages By Jill is Jill's educational and marketing site. Equal Housing Lender. Member FDIC. This page is general information, not a commitment to lend or a guarantee of program approval or funds. All loans are subject to credit approval and program guidelines.