Single Close Construction Loans are a proven financial solution for Texas families building their own homes. These unique loans differ from traditional construction loans and can be extremely beneficial for families looking to construct a home, but do not want to take out two loans.
Instead of the short term benefits often experienced from construction loans, a one time close construction loan in Texas combines a construction loan with a permanent loan or mortgage. This eliminates significant financial stress that families take on when building a home.
Traditionally, when an individual or a family is building a home, they will need to take out two loans - a loan for construction and a following permanent loan for the mortgage. There are countless moving parts in this confusing process. Not only is this two loan process complex, but a borrower is required to close on two different loans costing them valuable time and money that could be spent more productively.
With a Single Close Construction Loan in Texas, a borrower will only have to close one loan. This is because a one time close construction loan allows a borrower to combine a construction loan with a permanent loan. Once construction is completed, the loan will roll into a mortgage loan, which offers permanent financing on the newly built home. This option combines home construction and long-term financing into one.
Single Close Construction Loans help many families in Texas in various ways. Let’s discuss a few benefits:
Closing on multiple loans can be expensive. The standard cost of closing is 3%-5%, meaning multiple closes can cost you thousands of dollars. With one close, you’ll save significant funds and eliminate the wasted time of closing on two loans.
When a borrower is in need of a construction loan and a permanent loan, they may have to take out loans from two separate lenders. If a borrower chooses to go with a one time close construction loan, they will only work with one lender.
Working with one lender means a borrower will only have to qualify once. This can significantly reduce the risk for a borrower because qualifying for a loan is not a simple process. The loan documentation you receive will always be up to date, and the terms will never expire.
Single Close Construction Loans in Texas from GO Mortgage are equipped with fixed interest rates. Traditionally, a 30-year home loan will have variable interest rates that can “balloon” over time. With GO Mortgage, there are no surprises as the fixed rate will continue from the construction loan into the long-term loan.
GO Mortgage is a trusted partner for borrowers looking for reliable Single Close Construction Loans in Texas. We are a proud seller and servicer of a number of government-backed home loan products. Our loans are issued as our team is an approved lender who must adhere to guidelines that cover set fees, interest rates, and how funds can be used.
The GO Mortgage team will guide you through the entire qualifying process from builder eligibility to the beginning of construction. We will work directly with your builder, offer contract services, and much more to ensure that your loan and building process is seamless and streamlined.
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