Home Construction Process

How to build it beautiful.

Constructing a custom home or a new addition can be equal parts exciting and overwhelming. Here are the steps you need to know to ultimately make it a successful experience.

northwest image

Build a new home.

You can alleviate many a headache by being prepared and working with a lender who can help you navigate the complexities of the custom home building process. That would be Evergreen Home Loans™. At Evergreen, we’ll work with you every step of the way.

  1. Get preapproved.
  2. Find the land.
  3. Choose a builder.
  4. Find a house plan.
  5. Select the materials.
  6. Secure the financing.

Contact an Evergreen loan officer to get started with financing preapproval. Once you know how much home you can build, you can look for land and develop your plans with confidence.

northwest image

Build a new addition.

For many homeowners, buying that dream home in a dream neighborhood in a housing market that moves faster than a roadrunner seems virtually impossible. For other homeowners, it’s less about location and more about space—as in, not enough of it. And for others still, it could be about updating an aging home with long-overdue accoutrements. Whatever your reason, the Evergreen dream team can work magic for home renovations too.

Aside from not having to look for land, the steps through the renovation process are similar to those of building a new home:

  1. Get preapproved.
  2. Choose a builder.
  3. Draw up a blueprint.
  4. Select the materials.
  5. Secure the financing.

Evergreen loan officers are standing by to look at your plans or ideas and help you start building something that’ll make your existing home everything you want it to be.

Frequently asked questions:

How does a construction loan work?

A construction loan allows you to cover the costs of building your home. There are different types, including those listed below.


Construction-to-permanent loan: Also known as a one-time-close (OTC) loan, this option is an all-in-one financing experience. It provides financing for the lot purchase and building construction process, then automatically converts to one permanent loan.


Construction-only loan: This loan only covers the home construction period, and you’ll need to take out an end loan when the construction is complete.


End loan: This is a standard loan that a homebuyer or builder (who will own the home) can secure for a completed home. If your home's construction phase is finished, you could submit a mortgage application for this loan type.


Renovation loan: A renovation loan allows you to purchase a home and make renovations all with one loan.


Owner-builder loan: When you build a home, you usually have a general contractor in charge of the entire project. If you’re acting as the general contractor for your home, you may be able to secure an owner-builder loan.

What are the construction loan interest rates?

The interest rate is the cost of borrowing the principle loan amount. It’s determined by current rates and the borrower’s credit profile (including credit score).

Refinance FAQs

Learn more about refinancing your home.

Read our Refinance FAQs


Use our payment and estimate calculators to help you make the right decisions.

Go to calculators

Get started right now.