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(Illustrates how money is funded during
construction based on a predetermined set of
draws. Draws are paid as work is completed during
the construction phase of the loan)
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Change Orders - Any change orders
that are not given to the loan officer
prior to the mortgage closing will
not be incorporated into the draw
schedule. The borrower(s) will be
responsible for any change orders
to their home package or construction
contract.
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Freight - The cost
of shipping the home package from
the manufacturer to the borrower's job
site.
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Sales Tax -
Depending on what state the borrower(s) are building
in , sales tax on the home package
may or may not be included in the
contract.
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Finalizing Disbursement Schedule -
Upon completion of the disbursement
schedule, both the borrower(s) and
builder are asked to review and approve
the disbursement schedule.
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Disbursement Revisions - Changing
the disbursement schedule before initial
settlement is acceptable with the
approval from the American Home Bank
Construction Department. Revisions
after initial settlement are also
subject to the approval of the American
Home Bank Construction Department.
Changes after initial settlement are
frowned upon and not easily granted.
It is encouraged to thoroughly go
over the disbursement schedule with
the builder prior to the start of
construction.
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