How Does a Single Close Construction Loan Work?

A Construction-to-Permanent Single Closed loan can provide financing for both the construction loan and the permanent loan.  The benefits of a single close option is there is only one closing and no re-qualifying for the permanent loan, saving customers time and money.  Additionally, depending on the permanent loan product selected, the customer may also benefit by not having to make any payments during the construction phase.

Purchasing a home involves lots of moving parts. It may seem like a daunting task but with a strong mortgage loan partner to walk you through the process, it can be less overwhelming.

Here’s how a Single Close construction loan works:

  1. GSF Mortgage Single Close Construction Process BlogBuilder Review - Find the right builder and have them work with your mortgage loan partner.
  2. Contract Preparation - Your loan officer will work with you to determine if the home you selected is within your budget, and with your builder to determine the cost to build your home and finance it. 
  3. Contract Signed - Once a purchase price is determined, you and your builder will provide a signed contract to your mortgage loan partner and the loan approval process will begin.
  4. Project Review And Underwrite The Loan - Your loan will be submitted for a construction project review and to underwriting department to approve the permanent portion of the loan. 
  5. Loan Closes - Once the paperwork is signed and your loan has closed, the construction of your new home can begin!
  6. Construction Begins – Your lender will manage the construction phase from ordering draw inspections, and any state required surveys and inspections.
  7. Move Into Your New Home – Congratulations!

The GSF Mortgage Corporation construction division has the experience and expertise to review and approve the project budget, plans, and specs, adding an extra layer of protection for our customers.

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