Construction Financing Checklist

At Chelsea Lumber, we do our best to make it easy for you to finance the construction of your new home. This page provides our itemized listing of details and procedures. Use it as a handy checklist as you work through the process of home construction financing.

1. You bring a set of blueprints to Chelsea Lumber Company.
2. Chelsea Lumber Company completes a materials estimate for you.
3. Bring your completed credit application to Chelsea Lumber Company.
4. You collect bids for labor and/or materials from subcontractors as shown on the reverse side of this sheet.
5. Your Chelsea Lumber Company representative meets with you to transfer your bids to Chelsea Lumber’s worksheet and mutually agree on a dollar amount needed to complete the project.
6. Chelsea Lumber Company orders a certified appraisal.
7. You deliver a copy of the existing title policy to Chelsea Lumber Company. If a title policy is not available, a copy of a deed or land contract will suffice.
8. Chelsea Lumber Company updates the title policy, insuring Chelsea Lumber Company. This process could take two (2) weeks. This fee will be charged to your account.
9. You deliver a copy of a builder’s risk or homeowner’s insurance policy to Chelsea Lumber Company. No binders – you must pay a one-year premium in advance. Mortgagee clauses must read as follows:
   • 1st Mortgagee
     Mail Code 3394
     Commercial & Real Estate Loan Documentation Dept.
     Comerica Bank
     P.O. Box 33019
     Detroit, MI 48232-5019
   • 2nd Mortgagee
     Chelsea Lumber Company & additional insured
     1 Old Barn Circle
     Chelsea, MI 48118
10. You take out a workman’s compensation insurance policy and provide a certificate of such policy or application to Chelsea Lumber Company.
11. After receipt of all documents listed above, your Chelsea Lumber Company representative meets with you to sign necessary documents and close on the construction mortgage.
12. After the foundation is completed, Chelsea Lumber Company orders a mortgage survey. This fee will be charged to your account.
13. If there is an existing land contract or mortgage payoff, lending laws require Chelsea Lumber Company to wait at least three (3) business days from the time of signing the mortgage until we can open the account and pay off the property.