CONSTRUCTION LOAN PACKAGE CHECKLIST

1 CONSTRUCTION LOAN PACKAGE CHECKLIST The following items will be needed by the credit union to begin the CONSTRUCTION loan approval process: FINANCIAL INFORMATION: _____ Personal financial statement {Application} _____ Pay stubs for the previous 30 day period _____ Prior two year s tax returns {With W-2 s} _____ Last two months account statements {Checking, savings, stock & bond} _____ Prequalification letter {For long term financing} _____ Self employed borrowers with {Corporations, partnerships, LLC s, LLP s} Business tax returns for the previous two years Current balance sheet and profit and loss statement Copy of valid photo identification DISCLOSURE AND AUTHORIZATION: _____ Authorization to obtain credit information _____ Consumer CONSTRUCTION loan notice _____ Notices and Disclosures for In-house Real Estate Loans CONSTRUCTION INFORMATION.

2 _____ Estimate of CONSTRUCTION costs {With supporting bids} _____ Plot plan _____ Materials description form _____ Blueprints / plans {Two sets} _____ Owner builder resume {If managing the project} _____ Copy of contractor s license and business license and residential endorsement {If not managing the project} _____ List of sub-contractors and suppliers _____ CONSTRUCTION time line _____ Earnest money agreement on lot {If applicable} _____ Proposed energy rating {Heat loss analysis} _____ Soils and percolation test {If applicable} _____ Zoning classification, architectural and CCR requirements _____ Well log and septic permit {With health authority approval} _____ Utility services {Available at the site} _____ Appraisal { As proposed credit union will order} _____ Proof of insurance {Hazard w/ course of CONSTRUCTION or builders risk endorsement} Prior to closing _____ Other: _____ COURSE OF CONSTRUCTION AND LONG TERM LOAN ITEMS NEEDED The following items will be needed during the course of the CONSTRUCTION loan and shortly after the CONSTRUCTION is completed to provide the long term financing for the project: DURING THE CONSTRUCTION LOAN PROCESS.

3 Disbursement request forms {To pay for sub-contractors and suppliers} Invoices {Save all invoices, may need to produce them during or after the CONSTRUCTION loan} Lien waivers {If applicable} Credit union CONSTRUCTION inspections {The credit union will make regular on site inspections prior to CONSTRUCTION disbursements} Building inspections {Municipal inspections or ICC inspections will be required for the project} The areas to be inspected are: ~ Plans and specifications ~ Footings and foundation ~ Rough in framing, plumbing, and electrical ~ Insulation and vapor barrier ~ Conditional ~ Final PRIOR TO LONG TERM LOAN CLOSING: Notice of completion {Filed 15 days prior to long term loan closing} As-built survey Final appraisal {Photos, recertification of value , completion of misc. work} Final municipal or ICC inspection form {PUR 102} Final thermal / energy certification {PUR 101} Lien waivers {If applicable} Homeowners insurance binder / policy {Mortgagee clause} Any investor {Long term loan} special conditions satisfied Escrow for completion {Seasonal related items due to weather, no health and safety issues allowed} ADVISORY NOTE: This loan PACKAGE has been assembled to assist you in understanding the complexity of an interim CONSTRUCTION loan and to make it as easy as possible for you to gather the required documentation and knowledge to engage in this endeavor.

4 Please be aware that the biggest pitfall in the interim CONSTRUCTION process is the underestimating of both the costs and time involved to complete the project. Uncontrollable events and untimely delays will probably impact your project at some point. Having the adequate contingency built into the process for both cost and time overruns will be of paramount importance. You will also be required to have a sizable investment in the project in the form of either cash or land equity. In addition, you will need to show proof of sufficient assets {preferably in cash reserves} to cover potential cost overruns as well as long term closing costs with reserves for taxes and insurance. If you are uncomfortable with the scope of the project and its requirements, or you are unable to show your capacity to manage this type of endeavor, then it is suggested that you engage a general contractor to assist with your homes CONSTRUCTION .

5 You will still be able to control the purse strings with the credit union, but the contractor will assist you with all of the other aspects of the project. Please feel free to ask as many questions as needed from our credit union staff to help clarify any points of concern or confusion. We hope to make this complicated process as easy and understandable as possible for our members. Uniform Residential Loan Application Freddie Mac Form 65 7/05 ( )Page 1 of 5 Fannie Mae Form 1003 7/05 ( ) Uniform Residential Loan Application _____ This application is designed to be completed by the applicant(s) with the Lender s assistance. Applicants should complete this form as Borrower or Co-Borrower, as applicable. Co-Borrower information must also be provided (and the appropriate box checked) when the income or assets of a person other than the Borrower (including the Borrower s spouse) will be used as a basis for loan qualification or the income or assets of the Borrower s spouse or other person who has community property rights pursuant to state law will not be used as a basis for loan qualification, but his or her liabilities must be considered because the spouse or other person has community property rights pursuant to applicable law and Borrower resides in a community property state, the security property is located in a community property state, or the Borrower is relying on other property located in a community property state as a basis for repayment of the loan.

6 If this is an application for joint credit, Borrower and Co-Borrower each agree that we intend to apply for joint credit (sign below): _____ _____ Borrower Co-Borrower I. TYPE OF MORTGAGE AND TERMS OF LOANM ortgage Applied for: VA Conventional Other (explain): FHA USDA/Rural Housing ServiceAgency Case Number Lender Case Number Amount $ Interest Rate % No. of Months Amortization Type: Fixed Rate GPM Other (explain): ARM (type): II. PROPERTY INFORMATION AND PURPOSE OF LOANNo. of Units Subject Property Address (street, city, state & ZIP) Legal Description of Subject Property (attach description if necessary) Year Built Purpose of Loan Purchase CONSTRUCTION Other (explain): Refinance CONSTRUCTION -Permanent Property will be: Primary Residence Secondary Residence Investment Complete this line if CONSTRUCTION or CONSTRUCTION -permanent loan.

7 Year Lot Acquired Original Cost $ Amount Existing Liens $ (a) Present value of Lot $ (b) Cost of Improvements $ Total (a + b) $ Complete this line if this is a refinance loan. Year Acquired Original Cost $ Amount Existing Liens $ Purpose of Refinance Describe Improvements Cost: $ made to be made Estate will be held in: Fee Simple Title will be held in what Name(s) Manner in which Title will be held Source of Down Payment, Settlement Charges, and/or Subordinate Financing (explain) Leasehold (show expiration date) Borrower III. BORROWER INFORMATIONCo-Borrower Borrower s Name (include Jr. or Sr. if applicable) Co-Borrower s Name (include Jr. or Sr. if applicable) Social Security Number Home Phone (incl. area code) DOB (mm/dd/yyyy) Yrs. School Social Security Number Home Phone (incl. area code) DOB (mm/dd/yyyy) Yrs.

8 School Dependents (not listed by Co-Borrower) Dependents (not listed by Borrower) Married Unmarried (include Separated single, divorced, widowed) no. ages Married Unmarried (include Separated single, divorced, widowed) no. agesPresent Address (street, city, state, ZIP) Own Rent ____No. Yrs. Present Address (street, city, state, ZIP) Own Rent ____No. Yrs. Mailing Address, if different from Present Address Mailing Address, if different from Present Address If residing at present address for less than two years, complete the following: Former Address (street, city, state, ZIP) Own Rent ____No. Yrs. Former Address (street, city, state, ZIP) Own Rent ____No. Yrs. Borrower IV. EMPLOYMENT INFORMATIONCo-Borrower Yrs. on this job Yrs. on this job Name & Address of Employer Self Employed Yrs.

9 Employed in this line of work/profession Name & Address of Employer Self Employed Yrs. employed in this line of work/profession Position/Title/Type of Business Business Phone (incl. area code) Position/Title/Type of Business Business Phone (incl. area code) If employed in current position for less than two years or if currently employed in more than one position, complete the following: Dates (from to)Dates (from to) Name & Address of Employer Self Employed Monthly Income $Name & Address of Employer Self Employed Monthly Income $Position/Title/Type of Business Business Phone (incl. area code) Position/Title/Type of Business Business Phone (incl. area code) Dates (from to) Dates (from to) Name & Address of Employer Self Employed Monthly Income $Name & Address of Employer Self Employed Monthly Income $Position/Title/Type of Business Business Phone (incl.)

10 Area code) Position/Title/Type of Business Business Phone (incl. area code) Base Empl. Income* $$$Rent $Overtime First Mortgage (P&I) $Bonuses Other Financing (P&I) Commissions Hazard Insurance Dividends/Interest Real Estate Taxes Net Rental Income Mortgage Insurance Homeowner Assn. Dues Other (before completing, see the notice in describe other income, below) Other:$$$$$Notice:B/CMonthly Amount $This Statement and any applicable supporting schedules may be completed jointly by both married and unmarried Co-Borrowers if their assets and liabilities are sufficiently joined so that the Statement can be meaningfully and fairly presented on a combined basis; otherwise, separate Statements and Schedules are required. If the Co-Borrower section was completed about a non-applicant spouse or other person, this Statement and supporting schedules must be completed about that spouse or other person also.