What Documents Do I Need for a Construction Loan? | Mayflower Venture Partners

Document Checklist for Builders

What Documents Do I Need for a Construction Loan?

What documents you need for a construction loan depends on the lender — but for a private new construction loan, the list is shorter, cleaner, and more logical than most developers expect. Here is everything you need, when you need it, and why each item matters.

What Documents Do I Need for a Construction Loan — The Complete List

The document requirements for a private new construction loan are organized around a simple logic: the lender needs to verify the deal, verify the borrower’s ability to execute it, and ensure the legal and insurance structure is in place before funds are advanced. Every document on the list serves one of those three purposes. There is nothing arbitrary here and nothing that should surprise a prepared developer.

The most important thing to understand about the document collection process is timing. Some documents need to be in motion the same day you sign the term sheet. Others need to be assembled within the first few days. A small number need to be in place before you even apply. The developers who close in 10 days are the ones who understand this timing and act on it immediately. The ones who treat every document request as equal urgency end up bunched at the end of the timeline with everything due at once and a closing that slips.

Same Day as Term Sheet Signing

Start these immediately — they drive the timeline

Insurance broker notification and binder request

Bank statements pulled and organized

IDs gathered for all principals

LLC documents reviewed for currency

Within 2 to 3 Business Days

Submit these as quickly as possible after signing

Full document package submitted to processor

Attorney engaged and aligned on closing date

Insurance binder received and submitted

Any outstanding LLC issues resolved

Have Ready Before You Apply

These should exist before you pick up the phone

Executed purchase and sale agreement

Detailed construction budget from GC

Comparable new construction sales analysis

Track record summary of completed projects

The Complete Document List — Category by Category

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Deal Documents

Have Before You Apply

Executed Purchase and Sale Agreement

The signed agreement between you and the seller establishing the purchase price, closing date, and all terms of the acquisition. Must be fully executed — signed by both buyer and seller with all addenda included. This is the document that sets the entire closing timeline and it needs to exist before you call a lender.

Why It Matters

Establishes purchase price for LTC calculation and closing deadline for timeline planning

Comparable New Construction Sales Analysis

Three to five recent closed sales of comparable new construction homes in the same neighborhood. Each comp should include the address, square footage, bedroom and bathroom count, finish level notes, sale price, and days on market. Recent means within six months. Tight means within a quarter mile of your subject property.

Why It Matters

Supports your projected exit value — the most important number in spec home underwriting

Detailed Construction Budget

A line-item breakdown of all construction costs by trade and phase — site work, foundation, framing, roofing, mechanical, insulation, drywall, finish work, exterior, landscaping, and a contingency line of at least 15%. Must reflect current market rates in your specific town. A summary estimate from a contractor who has not actually priced the project is not a construction budget.

Why It Matters

Determines construction holdback amount and establishes the draw schedule framework

Permit or Qualifying Documentation

For new construction: a building permit in hand, a written attorney zoning opinion letter confirming by-right buildability, or a stamped architect’s letter confirming the project meets all zoning requirements without variances. For fix and flip renovation projects, a permit is generally not required before closing. This distinction matters — know which category your project falls into before you apply.

Why It Matters

Confirms construction can begin after closing without regulatory uncertainty

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Entity Documents

Submit Within 48 Hours

LLC Operating Agreement

The governing document of your borrowing entity establishing membership interests, management structure, and operating authority. Must reflect the current membership — if members have changed since the original operating agreement was drafted, an amendment or a restated agreement is required. The lender and their counsel will review this document carefully to confirm the entity is properly structured and that the signing member has authority to bind the LLC.

Common Problem

Outdated membership — update before applying

Certificate of Good Standing

Issued by the Secretary of State for the state where the LLC is registered, confirming the entity is in active status and has met all annual reporting and fee requirements. Certificates of good standing expire — many lenders require one dated within 60 to 90 days of closing. Check the date on yours before you apply and order a fresh one if it is more than 60 days old. In Massachusetts this is available online from the Secretary of State’s office within 24 hours.

Common Problem

Expired certificate — check before you apply

EIN Confirmation Letter

The IRS letter confirming the entity’s Employer Identification Number. This is the SS-4 confirmation letter issued when the EIN was obtained. If you cannot locate it, the EIN can be verified through the IRS Business and Specialty Tax Line. Some lenders also accept a tax return filed under the EIN as confirmation. Do not confuse the EIN with the state registration number — they are different identifiers.

Why It Matters

Required for loan document preparation and title company verification

Government-Issued ID for All Principals

Current, unexpired driver’s license or passport for every member of the borrowing LLC. All principals who are signing the personal guaranty must provide ID. If there are multiple members, all need to be identified. Foreign nationals may need to provide a passport and, in some cases, a visa document confirming legal status in the United States.

Common Problem

Expired ID — check expiration dates now

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Financial Documents

Submit Within 48 Hours

Three Months of Bank Statements

Personal and business bank statements for the three most recent full months. Must be actual bank statements — not account summaries or screenshots. They need to show the account holder name, account number, institution name, and full transaction history for each month. Current means the most recent statement should be within 30 days of closing. Statements from four months ago do not tell the lender what your current liquidity position is.

Why It Matters

Shows liquidity, reserves, and financial management patterns — more revealing than tax returns

Track Record of Completed Projects

A written summary of your completed new construction and renovation projects — addresses, markets, completion dates, and verified sale prices. The more specific the better. If you have HUD-1 settlement statements from prior closings, include them. The goal is to make your track record verifiable from public record rather than relying on your description of it. Addresses alone allow the lender to pull public records confirming the transactions occurred.

Why It Matters

The most powerful proxy for execution capability — more important than credit score

Personal Financial Statement (if requested)

A balance sheet showing your total assets — real estate holdings with current values and outstanding mortgages, business interests, investment accounts, and liquid assets — and your liabilities. Not all private lenders require this as a formal document, but being able to describe your overall asset position clearly on the initial call accelerates the underwriting conversation significantly for borrowers with complex financial profiles.

When Required

Requested for larger loans or complex borrower profiles

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Insurance

Order Same Day as Term Sheet

Builder’s Risk Insurance Binder

A builder’s risk policy — also called course of construction insurance — covers the property under construction against loss from fire, wind, theft, vandalism, and other covered perils during the build. The policy must name the lender as mortgagee, be paid in advance for a one-year period, and meet the lender’s coverage minimums. Coverage amount should reflect the full replacement cost of the completed structure, not just the land value. Contact your broker the day you sign the term sheet — not the week before closing.

Common Problem

Last-minute requests — order on day one of term sheet

General Liability Insurance

Coverage protecting against third-party bodily injury and property damage claims arising from construction activity on the site. Most lenders require this in addition to builder’s risk. Your GC’s general liability policy may satisfy this requirement if it names the property owner as an additional insured — confirm with your broker and the lender’s requirements before assuming the GC’s policy is sufficient.

Why It Matters

Protects against third-party claims during construction — required before closing

Mayflower Venture Partners Mortgagee Clause

Mayflower Venture Partners LLC, ISAOA/ATIMA
2 Batterymarch Park, Suite 106
Quincy, MA 02169

Give this to your insurance broker the same day you sign the term sheet. Every day you wait on this is a day you potentially add to your closing timeline.

The Most Common Document Mistakes That Delay Closings

Most construction loan closing delays trace back to a small number of predictable document problems. Here are the ones we see most often and exactly what to do about each one.

Expired Certificate of Good Standing

Developers who formed their LLC two years ago and have not touched it since often discover at closing time that their certificate of good standing expired months ago. Order a fresh one from the Secretary of State as soon as you decide to pursue a deal. In Massachusetts it takes 24 hours online and costs $12. There is no reason this should ever surprise you at closing.

Bank Statements That Are Too Old

Statements from three months ago tell the lender what your financial position was three months ago. Lenders want current financials — within 30 days of closing. If your bank statements are getting stale during a long closing process, pull updated ones and resubmit. Do not assume the ones you submitted in week one are still valid in week three.

Insurance Binder Requested Too Late

This is the most common avoidable closing delay. A borrower who contacts their insurance broker two days before closing is a borrower who has added unnecessary risk to their timeline. Contact your broker the same day you sign the term sheet, give them the mortgagee clause, and have the binder submitted to the lender within 48 hours. Every day this takes longer than it should is a day you chose to add to your closing.

Operating Agreement With Wrong Members Listed

An LLC operating agreement that lists members who are no longer in the entity, or does not include members who are, creates a legal problem that title counsel will not close around. If your LLC membership has changed since the original agreement was drafted, get an amended operating agreement prepared by your attorney before you apply. This is a two-hour task for an attorney and a multi-day delay if you discover it at closing.

Construction Budget That Is a Summary, Not a Line-Item

A budget that says “construction costs: $600,000” is not a construction budget. A budget that breaks down every major trade — foundation, framing, roofing, mechanical, drywall, finish work, exterior — with specific costs for each is. The difference between these two documents is the difference between a lender who moves forward confidently and one who asks for more information before they can proceed.

Waiting to Engage an Attorney

A borrower who calls their attorney four days before closing and asks them to review loan documents they have never seen is a borrower creating last-minute pressure that does not need to exist. Engage your attorney the same day you sign the term sheet. Introduce them to the closing timeline. Let them know when to expect documents. An attorney who has two weeks to review is a different experience than one who has 48 hours.

The document list for a private construction loan is not long. It is not complicated. Every item on it has a clear purpose and a clear deadline. The developers who treat it that way close in 10 days. The ones who treat it as paperwork to deal with eventually close in 20.

Preparation is not a closing strategy. It is a competitive advantage. A developer who is ready to submit a complete document package within 48 hours of signing a term sheet is a developer who closes in 10 days, wins competitive deals, and builds a lender relationship that pays dividends on every future project.

At Mayflower Venture Partners, our in-house processing team sends every borrower the complete document list the same day they sign their term sheet. Every item is explained, every deadline is specified, and our processor is available to answer questions the same day they are asked. We lend throughout Massachusetts, Connecticut, Rhode Island, New Hampshire, and Maine. For more detail on what happens after you submit your documents, read our complete guide on the new construction loan closing process. When you have a deal ready, call us.

Documents Ready. Deal Ready. Let’s Close.

Direct private lender across New England. Complete document list on day one. Close in 10 to 14 business days.

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What Documents Do I Need for a Construction Loan?

What Documents Do I Need for a Construction Loan?