Six steps · from your first call to Move-In Day

The NewBuild System

Building a home has a lot of moving parts. The NewBuild System is how our team walks you through every one of them, in the same six steps, on every construction loan.

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Why a system

Why we use the same six steps every time

A construction loan has more steps than buying a home that already exists: land, plans, a builder contract, draws, inspections, and costs that tend to show up late. Most of the stress people feel comes from not knowing what happens next.

So we stopped treating each loan as a one-off. Every construction loan we do follows the same six steps, in the same order. You know where you are, what comes next, and who to call. Your builder or dealer knows it too.

VA, FHA, or conventional, every NewBuild loan follows the same steps. Start with the VA construction loan, the FHA construction loan, or conventional construction if you already know your path.

The NewBuild System

The six steps at a glance

  1. Build Plan Consultation

  2. Pre-Approval

  3. Plan and Contract Review

  4. Loan Closing

  5. Construction

  6. Move-In Day

The details

What happens in each step

  1. Step 1: Build Plan Consultation

    A free, 20-minute conversation about your land, your home, your budget, and your timeline.

    What you do
    Tell us what you want to build. No application, credit pull, or house plans needed.
    What we do
    Explain which loan likely fits, including VA if you or your spouse served.
    What you get
    A rough picture of your cash to close and what to line up next. Schedule your consultation.

  2. Step 2: Pre-Approval

    You apply, and we review your credit, income, and assets.

    What you do
    Complete the application and send the documents we ask for.
    What we do
    Build a budget that covers the home, the land, site work, and your cash to close. The cost planner can help you rough it out first.
    What you get
    A budget you can trust before you sign with a builder or dealer.

  3. Step 3: Plan and Contract Review

    We review your builder's contract, plans, and costs before you sign.

    What you do
    Send us the contract, plans, specs, and cost breakdown.
    What we do
    Look for missing costs like site work, well, septic, and grading, and check the builder's license and insurance paperwork. We review the paperwork, not the workmanship.
    What you get
    Fewer surprises once the build starts. Own your land already? See you already own the land.

  4. Step 4: Loan Closing

    Your land, construction, and permanent mortgage close together in one loan.

    What you do
    Sign your closing documents.
    What we do
    Coordinate the closing and set up the draw schedule with your builder or dealer.
    What you get
    One set of closing costs, and you qualify once, up front. During the build, you typically pay interest only on the money drawn so far. See how one-time close works.

  5. Step 5: Construction

    Your builder is paid in stages, called draws, as work is completed and inspected.

    What you do
    Watch your home go up, and tell us about any changes along the way.
    What we do
    Stay with you through every draw and keep you posted as draws are released. If a delay or cost change comes up, we help you sort it out early.
    What you get
    You know where your money is going at each stage of the build.

  6. Step 6: Move-In Day

    Your home passes final inspection, the last draw is paid, and you move in.

    What you do
    Get your keys.
    What we do
    See the final draw through. With a one-time close loan, your loan converts to your permanent mortgage with no second closing.
    What you get
    Your new home, and the same team to call with questions about your mortgage.

A pre-approval is not a final loan approval. All loans are subject to credit approval, underwriting, and the property meeting program requirements.

FAQ

Frequently asked questions

Is the NewBuild System a type of loan?
No. It's the six-step process our team uses to guide you through a construction loan. The loans themselves are VA, FHA, and conventional one-time close construction loans.
How long does the whole process take?
It depends mostly on your build. Steps 1 through 4 depend on your documents, the appraisal, and your builder's paperwork. The build itself is usually the longest part. We'll give you a realistic estimate for your project during the consultation. Timelines can change once the build starts.
Is the NewBuild System for buying an existing home or refinancing?
No. The NewBuild System is for construction loans only. Preferred Rate also helps with home purchases and refinancing, as a separate service. Meet the team.

All loans are subject to credit approval and underwriting. Terms and eligibility requirements apply. Not a commitment to lend.

Your land. Your build. Let's talk it through.

A free consultation is 20 minutes. We cover your land, your eligibility, and the right loan structure. No application required.

Tennessee · Virginia · North Carolina · South Carolina · Georgia · Kentucky

Schedule a Free Consultation

20 minutes · no application · no commitment

NewBuild is led by the Arrowood Team at Preferred Rate. 260+ five-star Google reviews.

Prefer to reach out directly?

(423) 406-1567 · newbuild@preferredrate.com