This form is designed to assist owner-builders and builders in determining the costs involved in building a new house or doing renovations. The form also assists the appraiser when determining the value of the property upon completion. Mortgage officers also use the form to assist them in making a decision in granting the mortgage.
To assist the mortgage officer, the appraiser, and the person building or renovating the house, this form should be fully completed. All of the categories in the form are used to make the job of construction and planning flow as smoothly as possible.
It is important that the cost of construction be closely estimated prior to applying for the mortgage. This ensures there will be sufficient money available from your own resources, together with the funds from the mortgage, to complete the house. Allowance should be made for price escalation from the time the house is started until it is completed. Material and labour costs increase continuously.