The first step is speaking with your Cadence Mortgage Home Loan Expert to discuss how much you can afford before you start planning your new home. We will help you determine which loan program is best and provide you an estimate of the cost of the loan. Your builder will also have peace of mind knowing that your dream home fits within your budget. It's never too early to contact us. The sooner you do, the closer you could be to your new home.

Now you are ready to apply for a Construction Perm loan. Your Home Loan Expert will give you a complete list of required documents to provide at application. Be prepared to provide your income, assets, liabilities, and other personal information. Additionally, you'll have to provide:

• Building Contract - fully executed b y you and the builder. Include all addendums.
• Cost Breakdown - if the building contract is a cost-plus arrangement.
• Plans - including floor plans and elevations. It must be detailed enough to rely upon for appraisal purposes.
• Specifications - written description of the materials to be used, the quality standards, and special installment requirements of the new home. It must be detailed enough to rely upon for appraisal purposes.
• Contract for the purchase of the land - if you do not already own it.
• Copy of the Deed or loan information for the land - if you already own it.

Following receipt of your application, our processing team will work closely with your loan officer to obtain loan approval.

• You will receive a Loan Estimate (LE) that details important terms of your loan and an estimate of the loan costs. You may receive additional Loan Estimates (called redisclosures) whenever changes are made to your application.
• Throughout the process, Cadence will keep you notified o f outstanding documents and requirements. It's important to provide documentation in a timely manner to avoid delays in closing your loan.
• An appraisal will be ordered once we receive your "final" contract, plans and specs. Once you submit these project documents, please do not make any changes without consulting with your Home Loan Expert first. Failure to do so may result in extra appraisal expenses for you and/or changes to your loan terms.

Once final loan approval is received, you are ready to close.

• Prior to closing, Cadence will schedule a conference call with you and the builder to discuss the loan, the construction phase, and other important information. This just ensures everyone is on the same page prior to starting construction.
• Prior to and at closing, you will receive a Closing Disclosure (CD) that details important terms of your loan and the closing costs.
• You will make your down payment and pay your closing costs.
• Equity in the land may cover all or part of your down payment. You may even use some of the equity in the land to cover closing costs.
• Typically, a 10% startup draw can be provided at closing. (Based on the building contract amount).
• The builder attends closing to sign a few documents and receive any funds that are due.

Now that the loan has closed, the Construction Phase of the loan begins. This is the period of time during which the home is built.

After construction is 100% complete and you have satisfied the final draw requirements, the loan converts from the construction phase to the permanent financing (mortgage) phase.

• Payment of Outstanding Loan Costs and Fees - Payment for loan costs that were not collected at the initial closing and any fees that were incurred during the construction phase, including but not limited to, outstanding construction phase interest, modification fees, and additional inspection fees.
• Establishing the Escrow Account - The escrow account is established for taxes and insurance. You may elect to waive escrows, subject to eligibility.
• Modifying loan terms - You may elect to modify certain terms of the loan prior to conversion, such as exercising the Float Down Option to lower the rate.
• Conversion - Once you have satisfied all the requirements of the loan, we will convert your loan from the construction phase to the permanent phase.