When applying for ground up construction loans, documentation is everything. Unlike a traditional mortgage, construction financing involves higher risk, more moving parts, and a lot more due diligence from the lender. If you’re a builder or real estate investor looking to secure ground up construction financing, knowing what documents lenders expect upfront can help speed up approval and avoid frustrating delays.

Here are six key documents most lenders will require before funding a ground up construction project:

1. Detailed Construction Budget

One of the first things lenders will ask for is a comprehensive construction budget. This document should clearly break down all costs associated with the project — materials, labor, permits, utility connections, contingency reserves, and more. Lenders use this to determine how much capital is needed and to ensure the loan amount aligns with the total project cost. A vague or unrealistic budget can raise red flags and slow down the financing process.

2. Project Plans and Architectural Drawings

Ground up construction financing is based on what will be built, not what already exists. Because of that, lenders want to see approved plans, blueprints, and detailed drawings of the structure. These documents help them understand the project’s scope, size, and timeline — and are often used by the appraiser to estimate future property value. Make sure the plans are accurate, up to date, and stamped by a licensed architect or engineer.

3. Builder or Contractor Agreement

Lenders want to know who’s actually doing the building. Most require a signed agreement or contract between the borrower and a licensed general contractor. This agreement should outline the scope of work, project timeline, payment structure, and responsibilities of each party. Some lenders may also request the contractor’s credentials, license number, insurance coverage, and previous project experience as part of their risk assessment.

4. Construction Timeline or Schedule

Along with the budget and blueprints, lenders will need a construction timeline — also known as a project schedule. This document maps out each phase of construction and when it’s expected to be completed. It helps lenders set up draw schedules, plan inspections, and monitor progress. A realistic, well-structured timeline gives lenders confidence in your ability to complete the build on time and on budget.

5. Proof of Land Ownership or Purchase Agreement

If you already own the land, you’ll need to provide proof — usually a deed or title report. If you’re still in the process of buying it, you’ll need a signed purchase agreement. Ground up construction loans often include the land cost as part of the overall financing package, so clear documentation here is essential. Lenders want to verify that you have legal control over the site before releasing any funds.

6. Borrower Financials

Finally, lenders need to assess your financial strength. Be prepared to submit personal and/or business tax returns, bank statements, credit reports, and a list of current assets and liabilities. Ground up construction financing is riskier than conventional lending, so lenders look for strong borrowers who can manage unexpected costs or delays if they arise.

Final Thought

Preparation is key when applying for ground up construction loans. Having these six documents ready not only builds lender confidence — it also shows that you’re organized, serious, and ready to move forward. The more thorough your file, the smoother the funding process will be.