The total cost of your home is stated in the contract. This cost is subject to change based on your change orders and selections. You may be ready to get the building process moving but still need more time to finalize choices for items like carpet, cabinets, tile, appliances and light fixtures. To address these items, you and your builder can agree to an allowance in the contract. An allowance is the estimated cost of each listed item. This amount is included in the contract total and therefore your mortgage. If the actual cost of the item exceeds the allowance, you can pay the difference in cash or ask your lender to approve a higher mortgage.