Frequently Asked Questions
Frequently Asked Questions
Quick answers to the questions almost every first-time builder asks.
4 min read
Q: Do I need to own the land before applying for a construction loan?
A: Not always. Some lenders will roll land into the loan if it's under contract. Confirm with your lender early.
Q: Can I be my own general contractor?
A: A few lenders allow it, but most require a licensed builder. It also adds significant risk if you're inexperienced.
Q: How much should I budget for contingency?
A: 5–10% of construction cost is a common rule of thumb. Larger or more custom projects lean toward 10%.
Q: When do I lock my mortgage rate?
A: For construction-to-permanent loans, the permanent rate is usually locked near completion. Ask your lender about extended rate locks.
Q: Who pays for inspections?
A: Inspections are typically a closing cost or rolled into your loan fees. Confirm with your lender.
Educational content only. NBLOCK Consulting does not provide legal, financial, lending, tax, insurance, or construction advice. Requirements vary by state, county, lender, and project — always confirm with the appropriate licensed professional.
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