Helpful Construction Steps
Six Steps to Building Your Home

While the idea of building your own home can be daunting, American Savings Bank wants you to realize your dream and reach your goal. To help you get there, we offer these helpful steps.

Step 1. Establish your budget
American Savings bank’s prequalification will provide you with a ballpark estimate of how large a mortgage you can afford.

Step 2. Choose your builder carefully
Great care should be taken in choosing a contractor since the success of the entire project depends upon the competence, managerial capabilities, financial soundness and manner of the contractor.

Step 3. Finance your project
American Savings Bank requires you to submit a completed Residential Loan Application and set of design drawings (blueprints), specifications and a construction contract signed by you and your contractor.

Step 4. Get the required approvals
Once your loan has been approved, you need to obtain all necessary government, utility and building approval at this time (usually done by your contractor). Also, the contractor must obtain a 100% Performance Bond — a type of insurance that guarantees the house will be built as agreed upon in the contract from a bond/surety company acceptable to American Savings Bank.

Step 5. Build your home
Once your mortgage has been recorded at the Bureau of Conveyances, your contractor may proceed with construction. You will begin making monthly interest only payments (plus escrow impounds for taxes and insurance).

Step 6. Complete your home and begin your Permanent Loan
Upon final disbursement of all loan proceeds, you will receive your final interest payment billing and begin your Permanent Loan payments.