For dealers and builders working with us

Partner Resources

Know exactly what's required at every stage of a one-time close construction loan, which forms to use, and who to call.

Bookmark this page. You'll want it again on the next deal. New to working with us? Start at the builder and dealer partners page.

The whole thing, start to finish

Where are you in the deal?

Same small team on every loan. Pick a step to see what you send, what we handle, and who to call.

01 Sending us a buyer Send a referral, or call and text it in

You send

  • Your buyer's name and phone
  • Your name and company
  • Anything they've mentioned: land, service history, credit

We handle

  • Figuring out which loan path fits
  • Reaching out to your buyer

Good to know

  • Not sure? Send them anyway
  • The first conversation commits no one

If your buyer owns the land or is buying it, send them over and we'll sort out which path fits. That part is our job, not yours.

Rather call or text? Call (423) 406-1567. Text a name and number to (423) 406-1567, or email newbuild@preferredrate.com.

02 Rhonda Hendrix Build Plan Consultation Rhonda Hendrix - what happens right after you send them

You send

  • Nothing more, unless you know more

We handle

  • Reaching out the same business day when we can, Monday to Friday, 8:30 AM to 6 PM ET
  • Phone, text, and email, leading with your name
  • About seven follow-ups if they go quiet

You hear

  • A text or email once we have connected with your buyer
How first contact works, step by step
  • We aim to reach out the same business day, Monday through Friday, 8:30 AM to 6 PM ET. Referrals sent after hours or on weekends are handled the next business day. We contact your buyer by phone, text, and email so we reach them however they prefer.
  • What we need from you: name, phone, email, and a sentence about what they're looking for. Anything they've already shared helps, like land they own, service history, or credit. If you don't have those details, that's okay. We'll cover them.
  • We lead with your name. "Sam at ABC Homes asked us to reach out." Your buyer knows right away the referral came from you.
  • If they go quiet, we stay on it. We make about seven attempts, then move them to a longer-term follow-up list. We keep following up until they ask us to stop.
  • You'll hear from us every time. Each time we reach out to your buyer, you get a text or email update, so you're never left wondering where things stand.
03 Cindy Faulkner Pre-Approval Cindy Faulkner - where your buyer stands, and how the deal gets structured

You send

  • Nothing at this stage

We handle

  • A first call about the project
  • The application by phone, if easier
  • A call to you if one-time close isn't the path

You get

  • The OTC Worksheet: what your price needs to be
  • A copy of the pre-approval letter
The OTC Worksheet and how Cindy structures the deal

Cindy takes it from here. Her first call with your buyer focuses on the project: how much they want to put in, the monthly payment they're aiming for, and their timeline.

  • No homework for your buyer. Some buyers will have already filled out an application, and some prefer to talk first. Either works, and Cindy can take the application over the phone.
  • Cindy does the explaining. Construction loans have more moving parts than a standard purchase, and even experienced homeowners usually haven't been through one. Cindy handles the explaining so you don't have to.
  • If a one-time close isn't the right fit, Cindy calls you. Usually it comes down to credit or available cash. She'll talk through how to get your buyer ready for it down the road rather than simply turning them away.
What you get: the One-Time Close (OTC) Worksheet

This is the playbook for the deal, and it's the answer to the question every dealer and builder asks: what does my price need to be?

We'll often ask you to build dealer- or builder-paid closing costs into the price, and on VA the construction interest too, since VA doesn't allow a veteran to pay it. Everything is laid out up front.

As long as the appraised value supports the total, the structure works. If it doesn't, Cindy tells you before you write the contract, not after. You and your buyer both get a copy, along with the pre-approval letter.

To request the OTC Worksheet, email newbuild@preferredrate.com and Cindy will send it over.

04 Kevin Cooper Amy Lay Review and Loan Closing Kevin Cooper and Amy Lay - most of your paperwork lives here

You send

  • Signed sales worksheet or contract
  • Land contract or deed, and deposit receipts
  • Bank pack: plans, specs, drawings, and BOM
  • Permits and builder's risk details

We handle

  • Disclosures and the appraisal order
  • Underwriting through approval
  • The first draw form, signed in advance

Top snags

  • Unsigned sales worksheets
  • Names that don't match the deed
  • Addresses that differ across documents
Full checklist: 11 items in three phases, plus getting approved

Two or three requests, not twenty. Kevin asks for the contract and the bank pack. Amy follows with the site plan, permits, and anything specific to the property. That's usually all it takes to reach project approval.

The three phases
Phase One: Initial Disclosures (5 items)
  • Builder or dealer license for your location. A photo is fine. We keep it on file, so you only need to send it once rather than with every deal. We may also need your general liability insurance.
  • Your company details, exactly as they should appear on documents. Legal entity name, DBA, then location name and number. List the authorized signer as the contact, not the salesperson. Getting this right up front saves re-issuing documents later.
  • Signed sales worksheet or contract, with the 911 address or parcel number. Tell us if a survey is being done or the land was recently split.
  • Signed land contract if the buyer is purchasing the land, or a copy of the deed if they already own it.
  • Earnest money deposit receipt. Receipts for all deposits listed on the contract, and a copy of the check if they paid by check. List only the deposits actually received.
Before you send

Check every signature before you send it. Unsigned sales worksheets are the most common thing we have to send back.

Names have to match the deed exactly. On FHA and VA, if the deed carries no middle name or initial, ours can't either.

The address has to match across every document. Appraisal, application, and sales worksheet all need the identical address.

Phase Two: Appraisal Order and Underwriting (3 items)
  • Bank pack. Plans and specs, drawings, bill of materials (BOM), and description of materials (HUD-92005).
  • Site or plot plan. Where the home will sit, plus setbacks, easements, outbuildings, and septic. Does not have to be an official placement survey. A hand-drawn sketch is fine.
  • Permit and utility information. Water and sewer arrangements, who's covering which costs, and current permit status. Amy usually completes this with you.
What stops an appraisal before it starts

A survey in progress. If one is being done, we hold the appraisal until it's in. Tell us early so nobody is waiting on the other.

An existing home on the property. We need a short letter saying it's being removed. Without it, the appraiser documents the home and it raises questions later.

Bedroom counts. If a bedroom is really a den or the home has options that change the count, tell us before the appraisal goes out. The count also has to match the septic permit where there is one.

Phase Three: Loan Approval and Initial Closing (3 items)
  • Building and septic permits. Send them as you get them. If they aren't issued yet, we can help with a letter showing an approximate timeline.
  • Builder's risk insurance. Some dealers and builders provide this for the buyer and some don't. Let us know which applies to you. If you don't, your buyer needs to know before closing that it's their responsibility.
  • First draw form - we handle this. We get it completed and signed in advance so the first draw funds at the closing table.
Before your first deal: getting approved

This happens once, not with every loan. Most partners we work with are already approved, and once you are, you stay approved. After that, just send updated copies of your license and insurance as they expire.

  • New to us: the Builder and Contractor Questionnaire, plus a current builder or dealer license, general liability insurance, workers compensation insurance, your rep's valid ID, a W-9, and how you like to be paid. Usually two to three business days once we have everything.
  • Already approved: updated license and insurance copies as they expire. That's it.

Email newbuild@preferredrate.com for the Builder and Contractor Questionnaire, and Kevin will send it right over.

05 Amy Lay Construction and draws Amy Lay - everything after closing, through the final draw

Once the loan closes, Amy takes over. Send her your signed draw documents and she handles the rest: submitting, following up, and keeping things moving. Kevin stays involved if anything gets stuck.

The 10/80/10 schedule

  1. 10%
    At closing. Signed draw documents, with borrower and builder signatures.We get these signed in advance, so the first draw funds at the closing table.
  2. 80%
    On delivery. Signed draw documents, the delivery ticket or invoice, and the building permit (or a county letter if it hasn't been issued yet).No inspection at this draw. Site photos are helpful.
  3. 10%
    On completion. Signed draw documents and the final documents for the loan program.We order the title update and property inspection.

Draws by request

  1. 1
    First draw. Signed draw documents.Typically no inspection is required for the first draw.
  2. 2
    Progress draws. Send a draw request as each phase of the work is completed.An inspection confirms the work, then funds are released.
  3. 3
    Final draw. The final draw request and the completion documents for the loan program.A final inspection, plus the title update.

When a project calls for it, we can negotiate a custom draw schedule. Amy will walk you through yours.

  • Three to four business days from a complete package. Send everything at once.
  • Need funds by a date? Tell Amy, and she'll work to meet it.
  • Final draw requirements vary by program (Conventional, FHA, VA). Amy will send the list for your loan.

Forms: Draw Request Form (affidavit, conditional waiver, and disbursement agreement) · Draw Requirements by Program · 10/80/10 Draw Schedule. Email newbuild@preferredrate.com to request any of them.

Forms

All forms in one place

Every form, checklist, and sample you'll need. Until downloads are available, request any of them and we'll send it right over: newbuild@preferredrate.com or (423) 406-1567.

Available on request

  • Builder and Contractor Questionnaire
  • Description of Materials (HUD-92005)
  • Draw Request Form
  • Draw Requirements by Program
  • 10/80/10 Draw Schedule (manufactured and modular)
  • OTC Worksheet sample
  • Permit and Utility Info Sheet
  • Project Approval Checklist
  • Sales Worksheet template
  • Site Plan sample

FAQ

Frequently asked questions

What does my price need to be?

It depends on the deal, and the OTC Worksheet is where you'll see it. We'll often ask you to build dealer- or builder-paid closing costs into the price, and on VA the construction interest as well, since VA doesn't allow a veteran to pay it. Each of those shows as its own line, so your net is never guesswork. As long as the appraised value supports the total, the structure works. If it doesn't, Cindy will tell you before you write the contract.

Does my buyer make payments during construction?

Yes, interest only. Full payments start once the home is finished and the certificate of occupancy is issued. The OTC Worksheet shows an estimate for both stages, during construction and after completion, so your buyer knows what to expect.

Do I have to send the license and paperwork every time?

No. Once you send your builder or dealer license, we keep it on file, and a photo is fine. Once you're approved, you stay approved, so each new loan only requires the deal documents.

Questions about a deal? Call (423) 406-1567. It rings the whole team.

New to working with us? See how we work with dealers and builders.
Pages for your buyers: land and home together · site-built homes.