Construction Loans - Central Bank Utah

Personal Banking · Loans · Construction Loans

Construction Loans

At Central Bank, we have great relationships with builders and a long history of providing construction loans. We’ll make the process as smooth as possible, so you can start building the project of your dreams. Download our Construction Loans PDF info sheet here.

What is a construction loan?

A construction loan is a short-term loan used to finance the building of a home or other real estate projects. Construction loans cover the necessary costs related to building real estate projects and can be obtained by a builder or home buyer.

Unlike many types of loans, the funds for a construction loan are not disbursed all at once. Construction loan proceeds, referred to as draws, are disbursed throughout the various stages of the construction process. Each draw is tied to an important phase of the project, such as pouring the foundation, framing, or completing the finishing work.

Before draws can be disbursed, inspections are done by the lender to verify that the construction project is moving along on schedule and within the estimated budget.

The loan term on a construction loan only lasts for the amount of time it takes to finish building, which is usually a year or less. When the project is complete, the construction loan is paid off by a long-term loan that is obtained by the borrower.

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Why choose Central Bank for your construction loan?

  • Fast Pre-Approval—Central Bank’s Mortgage Department can provide pre-approvals by reviewing income, credit, and cash to close.
  • Decisions Made Locally—Because Central Bank is locally owned and operated, we use in-house underwriting to make quick construction loan decisions right here in Utah County.
  • Quick to Close—Once your documentation is complete, we can close on a construction loan in as little as 10 business days.
  • Local Servicing—Your construction servicing stays at Central Bank, and your payments can be made directly to the bank.
  • Automated Payments—Central Bank can automate your construction loan payments by deducting them from your account here or at another financial institution.
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What do you need to start a construction loan?

To help make the construction loan application process quick and easy, we suggest you prepare and bring the following information with you to your first meeting with one of our experienced loan officers:

  • Name and social security number
  • Income verification – We will need a copy of your most recent pay stub and the last year’s tax return. If you’re self-employed, two years of tax returns will be required.
  • Asset verification – Gather any relevant documentation to verify the value of all assets, including checking and savings accounts, investments, or real estate.
  • Property address or lot and subdivision information
  • Estimated property value
  • Requested loan amount
Download Construction Loans PDF Info Sheet