One-Time Close Construction Loan

HOW IT WORKS

One-Time Close Construction loans offer a unique and slightly more complex path to building your dream home. However, the process typically involves several common steps:

• Choosing Your Builder: Prior to commencing construction, it's crucial to select the builder and contractors for your project. Keep in mind that your lender will need to approve this team before finalizing your loan.

• Creating a Construction Contract: You and your builder will collaborate to draft a comprehensive construction contract. This vital document outlines essential project details such as the timeline and costs.

• Preparing Home Plans and Specifications: Lenders require detailed plans and specifications for property appraisal and loan approval. FHA and VA Single Close loans may also necessitate an initial survey and, in some cases, a lot contract. Your Loan Officer will guide you through your specific loan requirements.

• Initiating the Loan Process: While the One-Time Close Construction loan process can be more intricate than traditional loans, it still involves the gathering of essential information. This includes proof of income, assessment of your credit profile, evaluation of your debt-to-income ratio (DTI), and an assessment of your available assets.

• Closing the Loan: Upon approval of your loan application, you will proceed to the loan closing, marking the official start of your dream home project.

• Commencing Construction: After closing the loan, you're ready to begin the exciting journey of constructing the home you've always envisioned.