Frequently Asked Questions

No. You may make principal reductions at any time, but those funds will not be re-advanced later.

You will receive a notice 45 days prior to maturity. At that time, if construction is not complete a loan extension may be required. Contact your CLA for terms and conditions.

Notify your CLA immediately if there are changes to your contract, cost, plans or specifications.

Payments are interest only based on the outstanding balance, and are due monthly. A bill is mailed to you 15 days before the payment is due. Payments may be deducted automatically from your Sandy Spring Bank checking account or an account at another financial institution.

When your current home goes under contract, have the settlement attorney contact your CLA and provide lien release information. Your CLA and settlement attorney will coordinate releasing the lien.

Once your loan is approved, a Construction Loan Administrator (CLA) will be assigned to manage the draw process. The CLA is available to answer any questions you may have and will aid you and your builder in the scheduling of inspections and the disbursement of funds.

We collect a fee at settlement, which allows for up to six inspections, seven disbursements and, if applicable, modification to a permanent loan. You may be billed for additional fees if you exceed the standard number of inspections and disbursements.

The draw schedule details the amount of funds available to be disbursed and the necessary requirements to be met throughout the construction process.

Upon request of an advance of funds, we will order an inspection. Upon verification of work completed, we will disburse funds in accordance with the draw schedule.

We will deposit funds into your Sandy Spring Bank checking account. For any other method of disbursement you will be charged a $15 fee per advance.

Prior to the disbursement of funds, you will need to provide a copy of the building permit, wall check survey, well log (if applicable) and hazard/builders risk insurance.