FDIC-Insured - Backed by the full faith and credit of the U.S. Government
FDIC-Insured - Backed by the full faith and credit of the U.S. Government
Big Home Construction
From the first blueprint to the day you turn the key, The Missouri Bank is here to help you build with confidence. Whether you’re ready to break ground or just starting to explore your options, our experienced lenders will guide you through the construction financing process and help you find a loan that fits your plans and budget.
Why Build with The Missouri Bank?Construction Financing With a Hometown Advantage
Building a home is a big investment. You shouldn’t have to navigate the financing process alone. With The Missouri Bank, you’ll work with knowledgeable lenders who understand the construction process and are here to help from application through completion.
What You Can Expect:
Easy Terms & Competitive Rates
Financing options designed to help make building your dream home more manageable.
Easy, In-House Disbursing
Convenient access to construction funds as work progresses, with our in-house team helping keep the process moving.
Knowledgeable, Experienced Lenders
You’ll work with a local lender who understands your project and is available to answer questions along the way.
Help With Permanent Financing
When construction is complete, we can assist you with transitioning your construction loan into a permanent fixed-rate mortgage. Click here for TMB Mortgage Options
At The Missouri Bank you will have an experienced, personal loan officer to answer all your questions and fit your loan to your individual needs. Contact one of our Lending Team members to start the application process today.
You may also download the necessary loan forms needed to proceed with a Construction Loan from The Missouri Bank:
The form may be filled out and emailed to one of our Lending Team members or printed out to be returned to any branch. And remember, when returning the loan forms, please also provide us with the following documentation:
Have questions? Contact your local TMB branch.
We value your time and will try to get your loan processed as quickly as possible!
Home and Plans
We know construction financing can seem complicated. That’s why we break the process into manageable steps and stay by your side along the way.
Step By StepApply for a Loan
Start by meeting with a TMB loan officer to discuss your plans, determine your budget, and explore the construction loan options available to you.
Decision Time
If you haven’t already, now is the time to start putting your plans together. Choose a builder, find your lot if you haven’t purchased one yet, and work on designing your new home.
Loan Approval Process
Once you’re ready to move forward, TMB will gather the information needed for your loan, including your home design specifications, blueprints, and construction cost breakdown. We’ll also order an appraisal as part of the approval process.
Finalize Your Construction Loan
Once your loan is approved, you’ll complete your loan closing to fund the build. Funds are disbursed through a dual-control checking account to pay for the construction of your home.
Build Your Home
Now comes the exciting part—building your home! As construction progresses, funds can be drawn for completed work and items purchased for the project. Lien waivers, invoices, and/or receipts will be collected for work completed and for materials purchased for the project.
Inspections
We will monitor construction with regular inspections to ensure you stay on track and funds are being used as stated.
Transition to Your Permanent Mortgage
As your home nears completion, The Missouri Bank can help you transition from your construction loan into a permanent fixed-rate mortgage, helping make the move from construction to homeownership as seamless as possible. Click here for TMB Mortgage Options
At The Missouri Bank you will have an experienced, personal loan officer to answer all your questions and fit your loan to your individual needs. Contact one of our Lending Team members to start the application process today.
You may also download the necessary loan forms needed to proceed with a Construction Loan from The Missouri Bank:
The form may be filled out and emailed to one of our Lending Team members or printed out to be returned to any branch. And remember, when returning the loan forms, please also provide us with the following documentation:
Have questions? Contact your local TMB branch.
We value your time and will try to get your loan processed as quickly as possible!
Grassy landy
Your dream home starts with a plan—and the right financing can help bring that plan to life.
Let's Build Your Future Together...Unsure if you should proceed? Here is what a few of our customers have to say about our construction loans:
The Missouri Bank made the new home construction loan process simple and worry free. From the beginning planning and budgeting stages, to taking the time to explain the disbursing process, every employee at the bank helped with a smile. I highly recommend The Missouri Bank for a new home construction loan. Tom Wolff and his team at the Missouri Bank helped bring our families dream home to life. By walking us through the process of a new construction home loan, Tom and his team we were able to help us build a new home to fit our growing family. Tom and his whole team made the process easy for us to control our budgets, help us collect all of the proper lien waivers, and to disburse funds to our subcontractors. We couldn’t have asked for a smoother and easier process to finance our dream home. We highly recommend The Missouri Bank to help anyone with realizing their dream of building their own home!” – Jake G.
“When we decided to build a new house, we were faced with the seemingly intimidating process of obtaining, monitoring, and disbursing money to pay our contractor and his subs. Our contractor recommended we talk with The Missouri Bank in Wentzville. When we finally decided to dive into the process we were, to say the least, pleasantly surprised at the ease of the process and the willingness of the staff to help and answer any questions we had. Every person in that branch made us feel like we had been there for years, yet, we were brand new to the branch. I can’t begin to think of another organization I would rather do business with. I would not hesitate to go through the process again with this bank. To an employee, great customer care and relations. We were so impressed we moved all of our banking to them! They really are a model for how banks should operate.” – Bob W.
At The Missouri Bank you will have an experienced, personal loan officer to answer all your questions and fit your loan to your individual needs. Contact one of our Lending Team members to start the application process today.
You may also download the necessary loan forms needed to proceed with a Construction Loan from The Missouri Bank:
The form may be filled out and emailed to one of our Lending Team members or printed out to be returned to any branch. And remember, when returning the loan forms, please also provide us with the following documentation:
Have questions? Contact your local TMB branch.
We value your time and will try to get your loan processed as quickly as possible!
Lady with hardhat
Have questions about construction loans? We’ve got answers. Explore some of the most common questions about construction financing, the building process, loan draws, and transitioning to your permanent mortgage.
Find Out MoreWhat is a construction loan?
A construction loan is a financing option designed to help cover the cost of building a new home or other structure. Funds are released throughout the construction process as work is completed and eligible expenses are incurred.
When should I apply for a construction loan?
It’s a good idea to speak with a lender early in the planning process. We can help you understand your budget, financing options, and next steps while you’re making decisions about your lot, builder, and home plans.
Can I build on land I already own?
Yes. If you already own a buildable lot, you can use it as part of your construction project. The equity in your land may also count toward your required down payment.
Can I finance the land and construction together?
In many cases, yes. Depending on the timing of your purchase and the status of your construction plans, it may be possible to finance both the land and construction in one loan. In other situations, a separate land loan may be the best option. Your lender can help determine which approach is right for you.
Can I use my own builder?
Yes. You may select your own builder, provided they are experienced, reputable, and able to complete the project according to the approved plans and budget. In certain cases, borrowers with construction experience may be approved to act as their own contractor.
How much money do I need to put down?
Construction loans typically require a 20% down payment. This requirement can often be met through cash, existing land equity, or a combination of both.
What documentation is required to apply?
Required documentation may include:
Your lender will provide a full checklist based on your project.
How does a construction loan work?
A construction loan operates as a line of credit during the building process. Loan funds are advanced as construction progresses, and you only pay interest on the amount that has been disbursed. The approved loan amount is based on factors such as appraised value, project plans, construction costs, and lending guidelines.
When do my construction funds become available?
Construction funds become available after the loan has closed, all required documents have been signed, and any remaining loan conditions have been satisfied.
How are construction funds accessed?
Construction funds are held in a controlled construction account and released through a draw process as work is completed and eligible expenses are incurred.
What is a construction loan draw?
A draw is a scheduled release of construction loan funds to pay for approved labor, materials, and services during various stages of construction.
Why aren’t all of the funds provided at once?
Construction loans are designed to fund your project as work is completed. Releasing funds in stages helps ensure the project stays on budget and that loan proceeds are used appropriately throughout construction.
How are contractors and suppliers paid?
As work is completed, draw requests are submitted for payment. Once the required documentation has been provided and reviewed, funds are released from the construction account to pay contractors, subcontractors, and suppliers.
What documentation is required for a draw?
Each draw request typically requires:
What is a lien waiver?
A lien waiver is a document signed by a contractor, subcontractor, or supplier confirming they have been paid and waiving the right to file a mechanic’s lien against the property.
Why are invoices and receipts required?
Invoices and receipts help verify that construction loan funds are being used for approved project expenses and provide documentation for the draw process.
Will The Missouri Bank inspect my project during construction?
Yes. Periodic inspections help verify that construction is progressing according to the approved plans and budget and that completed work matches the draw requests submitted for payment.
When do I start making payments?
During construction, you will make monthly interest-only payments based on the amount of loan funds that have been disbursed.
Do I pay interest on the entire loan amount?
No. Interest is charged only on the funds that have been advanced. As additional draws are made during construction, your monthly interest payment will gradually increase.
What if construction costs increase?
If unexpected costs arise, contact your lender as soon as possible. Depending on your financial qualifications and loan guidelines, additional financing options may be available.
How long do I have to complete construction?
Construction loans are generally structured with a 12-month term. Extensions may be available if additional time is needed to complete the project.
Can my construction loan be converted into a mortgage?
Yes. Once construction is complete, we can help you transition your construction loan into a permanent fixed-rate mortgage.
Can I lock in my mortgage rate before construction is complete?
Mortgage rates generally cannot be locked until construction is nearing completion. We recommend connecting with our mortgage team approximately 30 days before your anticipated completion date.
Who can I contact with questions about my construction loan?
Our experienced lenders are here to help. Whether you’re just beginning to explore your options or are ready to start building, we’d be happy to answer your questions and guide you through the construction financing process.
At The Missouri Bank you will have an experienced, personal loan officer to answer all your questions and fit your loan to your individual needs. Contact one of our Lending Team members or Your Local TMB Branch for any questions you may have! We are here to help!
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