From Dirt to Doors: Ground-Up Construction Loan Timeline
Starting a ground-up development is both thrilling and challenging. Whether you're building a custom home or a mixed-use commercial project, understanding the full new home construction process timeline is critical to staying on track. While every project is unique, there are consistent phases and potential pitfalls to prepare for—especially when financing through a private hard money lender.
In this post, we’ll walk through each phase of the construction timeline, what lenders typically expect, and the common reasons projects face delays. To bring it all to life, we’ll also explore a real-world example from San Antonio.
Key Phases of New Construction
A successful build progresses through several core phases. Below is a general outline that mirrors the average new construction closing timeline, with estimated durations:
Month 1–2: Pre-construction and permitting
Month 3–4: Site grading and foundation
Month 5–7: Framing, roofing, and utility rough-ins
Month 8–11: Drywall and all interior/exterior finishes
Month 12: Final inspections and closing
A well-managed project follows this general timeframe, but (aside from borrower due diligence and construction issues) variables like location, weather, and local government processes can stretch timelines.
Pre-Construction (1–2 Months)
Delays at this stage are common if the borrower hasn’t completed proper due diligence or if permitting takes longer than expected.
Site surveys, soil testing, and environmental reports
Permit applications and zoning approvals
Utility planning and land clearing
Foundation and Site Work (1–2 Months)
This marks the official start of construction. Weather and unforeseen site conditions are often the biggest obstacles here.
Land grading, excavation, and pouring the foundation
Framing, Roofing & Utilities (2–3 Months)
At the end of this phase, the home or building is "dried in"—meaning protected from the elements. This is a key turning point in the new home construction process timeline.
Structural framing and roof installation
Rough-ins for plumbing, HVAC, and electrical
Drywall, Interior, and Exterior Finishes (3–4 Months)
Many ask: what happens in the new construction timeline after drywall? The answer is—everything from trim work and lighting to kitchen installations and appliance hookups. This is also the stage where homeowners and developers may be tempted to make costly last-minute changes.
Drywall installation, painting, flooring, cabinetry
Siding and exterior details
Final Inspections and Closing (1 Month)
This phase caps off the full new construction closing timeline. It's also when the construction loan is typically paid off or converted to permanent financing.
Final code inspections and punch list completion
Issuance of the Certificate of Occupancy
Final draw from the lender and official closing
Real-World Example: Mixed-Use Build in San Antonio
Let’s look at a practical scenario: a $3 million mixed-use development in a rising district of San Antonio. The lot is undeveloped, with no existing utilities, and the structure includes street-level retail and residential apartments above.
Key Points from the Build
The pre-construction phase dragged on due to zoning complications.
Unstable soil required foundation adjustments, delaying the site work phase.
Coordinating with multiple utility providers created setbacks during rough-in installations.
Once drywall was up, questions emerged about materials and finishes, impacting the new construction timeline after drywall.
Despite the hiccups, strong tenant interest and a solid lender relationship helped streamline the final draw and closing timeline.
This example highlights how preparation, communication, and the right lending partner can smooth out an otherwise complex build.
What Do Lenders Want to See?
Private hard money lenders often work faster and with more flexibility than traditional banks. Still, they want assurance that the project is progressing efficiently and that risks are mitigated.
At each phase, lenders typically request:
Progress photos and inspection reports
Updated budgets and schedules
Proof of permits and insurance
Contractor agreements and lien releases
Especially near the end of the new home construction process timeline, lenders want confirmation that the project is on track for completion and repayment.
Can Ignoring the Above Lender Requirements Cause Timeline Delays?
While lenders do work faster than traditional banks, this process is heavily dependent on you providing the above requirements to them along the way. So if you do this, no issues should occur, right?
No matter how well you plan, delays can happen. Here are some common issues:
Borrower-Related
Incomplete permits or miscommunication with contractors
Budget mismanagement or unrealistic timelines
Late design changes after drywall
Lender-Related
Slow draw releases
Excessive documentation demands
Understaffed appraisal or inspection teams
Having a responsive lender experienced in new builds makes a big difference, especially when navigating the nuances of the new construction closing timeline.
Ready to Build from the Ground Up? Choose Capstone Capital for Your Next Build
If you're planning a new development and need financing that matches your speed and ambition, Capstone Capital offers custom funding solutions for every stage of the new home construction process timeline.
From fast, flexible funding and draw-based release structures to extensive experience in both residential and commercial builds, Capstone Capital brings the speed, flexibility, and expertise you need to stay ahead and secure peace of mind from start to finish.
Contact Capstone Capital today to learn more about how we can help you build smarter, faster, and with confidence—from dirt to doors.
