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Builder Approval

BUILDER/CONTRACTOR APPROVAL

Please refer to the Contractor Review and Submission Requirements by Granite.

The builder/contractor must be approved by Granite to be eligible to complete the project. Granite Risk Management approval for construction projects is the process of identifying and mitigating potential risks, ensuring compliance with regulations, and making informed decisions to safeguard project success. The approval process can be started before a property is found and must be complete on every loan regardless of if the builder/contractor is already approved. The builder/contractor approval process must be complete prior to CTC. A $150 Contract Review Fee will be charged to the borrower but may be paid by the broker. UWM will not reimburse the fee. This fee is to be paid to Granite each time the process is complete.

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  • The client will fill out the top and bottom section of the Contractor Acceptance Checklist – Form B to then be sent to the builder/contractor

  • The builder/contractor or the client is responsible for completing the checklist items and sending necessary documents to Granite

  • Granite will review the information and issue the contractor approval back to the client

    • business day turn time for initial review

    • If additional information is needed in order to issue the approval, Granite will reach out directly to the builder/contractor – additional 2 business day turn time

 

Note: The Builder/Contractor Approval fee is named Contract Review Fee in section B of the fee screen. If the builder has already been approved by Granite within in the last 12 months, the broker or builder can resubmit the approval to Granite for review. If Granite finds the approval to still be acceptable the $150 charge will be refunded to the party paying the fee by Granite.


On a VA One-Time Close New Construction Loan, the builder/contractor must also be listed on the VA Registered Builders list.

  • The builder/contractor must download the forms listed on the VA website and send the completed forms to their Construction & Valuation Point of Contact

    • Builder information and Certification

    • VA Form 26-421 Equal Employment Opportunity Certification

    • VA Form 8791 VA Affirmative Marketing Certification

  • The VA will issue the builder/contractor a VA Builder ID Number

    • 5 business day turn time for ID issue

PROJECT APPROVAL

Please refer to the Project Review Requirements and Submission Requirements by Granite.
The project must be approved by Granite. The project approval process can be started once a property is found and should be complete prior to the loan entering CTC. A $300 Project Review Fee will be charged to the borrower but may be paid by the broker. The Lender UWM will not reimburse the fee.

  • The Project Review Checklist – Form D must be filled out by the client and sent back to Granite with the following documents/information included:

    • Signed Construction Contract - Borrower and Contractor must both sign; contract amount must match total in cost breakdown.

    • Cost Breakdown (aka Builders Budget) – Must match dollar amount included in the Construction Contract. A budget provided by Granite or a breakdown from the builder may be used.

    • Set of Plans - One full set of plans for construction and job specifications.

    • Appraisal - Lender will order an appraisal based on the plans and specifications. If the plans have not been submitted, please indicate in the Expected Completion Date column your expected delivery date to the Lender.

    • Building Permits - Submission of Building Permits to Lender — if pre-start activity has occurred, Permits must be included.

    • Pre-paid Information  (Prepaid Accounting Information – Form D1) – improperly documented pre-paids will not receive credit.

    • Draw as Close - submit a fully completed and signed (Construction Loan Disbursement Request/Authorization – Form E) documenting the hard cost draw at close.

 

NOTE: If pre-paid information and draw-at-close figures are unavailable at time of initial submission, submission can proceed, and Granite will condition out for them to be provided. An appraisal is not a requirement to start the approval process.

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  • Granite will issue the project approval back to the client

    • 3 business day turn time for approval

    • If additional information is needed in order to issue the approval, Granite will reach out directly to the builder/contractor – additional 2 business day turn time

  • The final project approval will include:

    • Conventional: Finalized number of draws, initial draw at closing amount and balance the project budget

    • VA: interest only mortgage payments during construction period, land only property taxes, property
      insurance (during construction), finalized number of draws, initial draw at closing amount, draw fee and title update fees and balance the project budget

    • This amount is finalized when the loan is locked

 

NOTE: It is recommended that the VA Interest-Only Payment Calculator is used to ensure accurate figures are being used in the budget.

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  • If the budget is underestimated and more funds are required to complete the project than the amount secured by the contingency plan, the borrower may be required to provide the additional funds out of pocket

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NOTE: The Project Approval Fee is named Project Review Fee in section B of the fee screen.

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VA PROJECT APPROVAL

 

UWM underwriter will provide a cover letter for the required funds that need to be included in the project budget. This cover letter will need to be supplied to the builder/contractor for the final project approval to be processed. Calculator available to calculate the appropriate amount of funds required.

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NOTE: Loan must be locked in order to determine the correct amount of required funds.

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