We offer the ability to do a "two time close" or a "one time close". The difference is as follows:
Two time close, you take out a construction loan first. Once the project is done, you refinance into a permanent loan. You have the most flexibility in selecting your end financing with this option, but you also have more costs, as you have two entirely separate loans.
One time close, you close on your final "end" loan in the beginning. Your rate for the end loan may or may not be locked. Your lender is determined once, as you have just one loan. There are cost savings with a one time close. During the construction process, you loan is generally interest only. Once the project is complete, you then do what is called a modification to the note rate and your loan is then adjusted to the permanent financing. Builders prefer this type of loan because they don't have to worry about you being able to close. You've already closed at the beginning. The only concern of the builder is building the home to your satisfaction so they can obtain construction draws.
Neither type of financing is right or wrong. They are just different. We are happy to provide you with either type of structure and can assist you with the proper analysis. These loans can be used for major remodeling, building a new home or even acquistion of an old home in order to tear it down and build a new residence.
Think of Venture Development when looking for Twin Cites mortgage professionals helping you obtain mortgage loan financing This web site is a satellite off of our main site which is quite extensive. Please click here at "Edina Mortgage Broker" and be redirected to our main page or visit http://www.ventureloanapp.comPrivacy Policy