Compare
One-time close vs two-time close
Both get your house built. The difference is how many loans, closings and approvals it takes.
| One-time close | Two-time close | |
|---|---|---|
| Loans | One loan for the build and the mortgage | Two loans: a construction loan, then a separate mortgage |
| Closings | One | Two |
| Closing costs | One set | Two sets |
| Qualifying | Once, before the build starts | Twice: once to build and again for the mortgage |
| When the house is done | The loan converts to your permanent mortgage | You apply and close on a new mortgage |
| Risk at the end of the build | Your permanent financing is already in place | If your income, credit or the market changes during the build, the second loan can get harder |
| Paperwork | One application | Two applications |
Why most people I work with choose one-time close
It's simpler. You go through approval once, close once and know your permanent financing is in place before the first shovel hits the ground. A lot can change in the time it takes to build a house. With a one-time close, you're not hoping you'll still qualify at the end.
When a two-time close can make sense
Some borrowers plan to pay off a large part of the loan when the house is done, or want to shop for their permanent mortgage later. If that's you, tell me. I'll walk you through both and you can decide.
Building soon? Let's talk before you sign anything.
Call, text or send the short form. I'll tell you plainly what it will take.