Everything You Want To Know About Construction Lending with Flatirons Bank.

Visualize what it looks like to work toward financial fitness. The picture in your head likely doesn’t involve jogging or free weights, does it?

According to David Kinney, chief credit officer with Flatirons Bank, what it takes to achieve financial fitness and the habits you adhere to when working to get in better physical shape have more in common than you might expect.

“Physical fitness is defined as one’s ability to carry out tasks without undue fatigue,” says Kinney. “Similarly, financial fitness means establishing a lifestyle that allows you to live comfortably within your means with a detailed plan to reach it and the discipline and consistent practices to keep it.”

Flatirons Bank is the only locally managed, community modeled bank in Boulder, serving local businesses and individuals with an array of customized banking services. With a focus on developing personal relationships, Flatirons Bank takes its staff’s extensive banking industry experience and translates it into incomparable service and actionable advisement for clients. 

When it comes to one of the most crucial services Flatirons Bank provides, construction lending, the team shared with us their expert tips on how to best plan for and execute building your new home while staying as financially conscious, and fit, as possible.


Perform Due Diligence:

Avoid cutting corners when assessing general contractor options, as contractor/owner disputes can significantly derail projects in time and money.

Prepare for Higher Rates & Fees:

Construction financing is typically more expensive than a traditional mortgage, so don’t be surprised by higher costs.

Establish Cash & Liquid Reserves:

Construction projects often have unforeseen cost increases, so maintain funds on hand above and beyond your construction contingency.

Expect the Unexpected:

Keep in mind the unpredictability of construction projects, which are rarely completed on time or within the original budget!


Hire Yourself:

Acting as your own general contractor will not only negatively affect your project but will result in much more caution from banks.

Rush Budgeting & Bidding:

An accurate budget is key to ensuring construction loan proceeds are sufficient and that the final appraisal reflects the true value of the home.

Assume Additional Costs = Additional Value:

Over-building for the market area or adding unique design features don’t always equate to proportional increases in value.

Be Afraid to Ask for Help:

Seek out guidance. Talk to others who have gone through the process or get an expert opinion.