One time close construction loan

ccassaday · ‎10-21-2010

So we are getting close to our house being finished. Excitement is setting in. I have a question. Is there anyone on here that has done a one time close construction loan. Where you closed on the construction and permanent at same time before construction starts. I was wondering what your experience is when construction is complete. How long for bank to get papers ready for modification. Do they start that before the house is finished. Our house is due to be finished on Feb 23rd. I am just curious.

novamc1 · ‎07-02-2015

The best, and really the only, answers to your questions need to come from whatever lender will be used for the process. Too many variables can be involved before all gets done. Good luck!

ccassaday · ‎10-21-2010

wrote:
The best, and really the only, answers to your questions need to come from whatever lender will be used for the process. Too many variables can be involved before all gets done. Good luck!

I understand that. I was just asking for any experiances.

millieshops · ‎03-09-2010

@ccassadayI'd say you should expect everyone with a financial interest in the property to have a representative at the same closing table. State laws differ and so do contracts, but my experience is that construction loans end when a primary loan on the finished house can be signed.

151949 · ‎03-09-2010

In my opinion - I think the bank would need the house to be totally completed and the certificate of occupancy issued.Those are not given until the final inspections of all systems have been done by the county. Then your parents will get a walk thru inspection with the builder where they can look for anything they want corrected. It's up to them if they want to accept the house and get the corrections done later or insist on them being done before the closing.

We visited our new house that is still under construction. We saw a few things - a chip in one wall, a broken window, qa loud squeaky cabinet door, and a window sill that is too small , leaving gaps on the sides. We marked them with painters tape then rode around and found the construction supervisor, told him to please go & look at the things we had marked.Better to get these taken care of before the final finishing touches.

LexPex · ‎03-29-2010

Sorry, I am not familiar. We took an equity loan on our home to build our new home and that worked out perfectly.

It is so exciting to build a home because you can have exactly what you want. Wish we had done that years ago, the first time we purchased a home.

RedTop · ‎09-01-2010

I am so glad my house was built when getting money to build was MUCH simpler. We asked for it, the bank gave it to us, and we paid our contractor, done deal. Course we finished the inside ourselves; it was not a turnkey job.

ccassaday · ‎10-21-2010

wrote:
I am so glad my house was built when getting money to build was MUCH simpler. We asked for it, the bank gave it to us, and we paid our contractor, done deal. Course we finished the inside ourselves; it was not a turnkey job.

It has actually been a simple process. My main question was how long after the house is done will it take to sign the modification papers. My guess is the last draw will be done when House is completed then bank can get papers ready.