OT help with construction loan process

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I wanted to use that 20% to purchase big ticket lumber and foundation materials now.

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That's a hard no.

For me personally, I was told to treat it like a regular closing. No big movement of money.

They may need proof of funds on day of.

Not a bank person though, just didn't want to frick up my construction loan standing so I asked the actual bank. Which is the only way you will get an answer.

My team lends money to commercial developers including home builders. We don’t lend to individuals… that said… no. You put your 20 down on the land. I’m not lending on materials until the work is in place … those things can walk off the job site. Think of it this way. After closing… you put up the work, the bank inspects then it funds.

We also do percentage of completion method. Not invoices. So if you’re over budget on a line item, you’re paying the difference then. Can’t do it off of invoices and the project goes over budget and you don’t have the money to finish after the loan is fully funded.