Before you sign a construction contract A practical question sheet from Matt Doby | Reviewed October 14, 2026 You don't have to know every construction or mortgage term. You do need a clear picture of what you're committing to. Use these questions with your builder and financing team. 1. Do the contract and budget agree? Ask which costs are included, which are allowances, and which are outside the contract. Check that the totals match. If something changes, ask how the agreed change will be documented and approved. 2. What might the lot cost beyond its price? Ask about access, clearing, grading, utilities, septic or sewer, permits and site work. Mark unknown costs as unknown rather than treating them as zero. 3. What does “builder approved” actually cover? A lender's builder approval and its review of your project are separate. Ask what remains to be reviewed for the lot, plans, budget, contract and draw schedule. 4. Have you already paid for something? Keep the invoice, proof of payment and the account record together. Ask how the expense appears in the construction budget and closing figures. A paid item does not automatically become an eligible credit, and the same payment should not be counted twice. 5. What happens if an allowance is too low? Ask about change orders, contingency and costs beyond the approved budget. Find out who approves a change and when you might need additional funds. 6. How do payments during construction work? Ask who pays interest, how any interest reserve works, and what you must pay while living elsewhere. The answer depends on the actual program and agreement; “one closing” does not explain every payment. 7. What must happen before you can move in? Ask about local inspections, the certificate of occupancy, lender completion requirements and conversion to permanent financing. Compare that schedule with your current housing plan. 8. Which numbers are still estimates? Ask what the cash-to-close and finished-payment estimates include: taxes, insurance, fees, reserves and verified credits. Request an explanation when two estimates differ. Your next step Write down the three unanswered questions most likely to change your budget or timing. Bring those to your builder and financing team before making the next commitment. If you'd like help organizing the financing questions for an NC or SC build, call/text Matt at 843-589-1776 or visit https://thelocalledger.com/build-plan-review/. Matt Doby | NMLS #2115225 Edge Home Finance, LLC | NMLS #891464 NC & SC | Equal Housing Lender Educational information; not a loan approval, legal advice or commitment to lend. Program and project requirements vary. Use your current written lender terms and signed agreements. PARCEL AND BUDGET WORKSHEET — added October 15, 2026 For each item: amount / source / included in contract? / owner / answer due. Use UNKNOWN for missing amounts, not zero. Parcel ID and permitting jurisdiction; lot price/ownership; survey and legal access; clearing/grading/drainage; driveway; water/sewer/septic; power; permits; base contract; allowances/exclusions; contingency; deposits and payment records; cash; proposed usable lot equity; financing costs; insurance/taxes; completion and move timing. Keep cash and proposed lot equity separate. Lender review establishes usable equity. Avoid counting paid items twice. Official starting points: Berkeley County planning, zoning and GIS — https://berkeleycountysc.gov/dept/planning/ Berkeley County floodplain resources — https://berkeleycountysc.gov/dept/planning/floodplain-management/ South Carolina DES septic approval — https://www.des.sc.gov/permits-regulations/septic-tanks/permits-licenses/septic-tanks-residential-single-home-builder Property resources do not establish buildability, insurance terms or loan eligibility.