Seeking One-Time Close Construction Loan Lenders? We Can Help
July 7, 2023
The process of constructing your dream home involves finding the ideal plot of land, a perfect custom layout, and the right builder to make it all become a reality. There is one additional critical step. You need access to reliable, streamlined financing for your home construction project.
Single-close construction loans are the best financing option for homeowners that want a smooth and simple loan process. This approach combines funding for the construction phase and mini-permanent mortgage* into a single loan.
*NOTE: Some creditors may offer one-time-close construction loans that include a permanent mortgage, but Texas Gulf Bank’s one-time close construction loans only include a mini-permanent mortgage.
Discover all the benefits that come from this type of loan program. Also, learn why Texas Gulf Bank is the best choice for homeowners searching for one-time close construction loan lenders.
How Does a Single Close Construction Loan Work?
A one-time close construction loan combines the financing for the home construction along with a mini-permanent mortgage into a single loan closing process. Applicants must submit building plans and budget needs as part of the loan application. Then, if your loan is approved, funds are deposited into a construction account in the name of the borrower. The borrower’s account is then debited to pay the contractor. If the loan is a custom build and the loan is to the builder, the bank will pay the builder directly.
During the construction phase, borrowers make interest-only payments based on the funds disbursed to the builder. After the construction phase has ended, the loan will automatically convert to an initial fixed rate mini-permanent loan.
The Benefits of One-Time Close Construction Loans
Southeast Texas Gulf Coast residents interested in building a new custom home gain several advantages by choosing a single close construction loan for their financing needs. Let’s take a look at the benefits available to you.
Lower Costs
A one-time close construction loan may offer significant cost savings. You only go through one closing process, which means paying only one set of closing costs and related fees (as opposed to two sets of fees for separate financing transactions).
Homebuyers can enjoy the benefits of typically favorable loan terms and affordable monthly payments by opting for this home loan process.
Time Savings
Single close construction loans are a popular loan program because they allow borrowers to initially apply for two types of major financing – the construction phase and the mini-permanent mortgage loan – at one time.
This setup ensures that only one closing process is needed, all funding is available for the duration of home construction, and the construction loan will seamlessly transition into a mini-permanent loan when the home is completed.
Peace of Mind
With a one-time close construction loan program, borrowers have peace of mind that mini-permanent mortgage financing is in place. A locked-in loan approval may avoid last-minute surprises. By avoiding a second loan closing process, you can choose to apply those savings to other expenses or toward loan repayment.
If you’re a homebuyer ready to begin financing your custom dream home, you need the benefits that come with a one-time close construction loan.
What Makes Texas Gulf Bank the Right Lender Choice
Constructing a home from the ground up requires having a great lending partner that can provide strategic financing solutions coupled with exceptional customer service.
Texas Gulf Bank proudly serves residents of the Southeast Texas Gulf Coast region with a range of top-quality loan programs, including one-time close construction loans.
Several factors set Texas Gulf Bank apart from other one-time close construction loan lenders. Take a look at what differentiates us from other lending options.
Extensive Regional Knowledge
Our residential loan officers have an in-depth knowledge of the Southeast Texas Gulf Coast regional market, which can help borrowers make well-informed real estate decisions. Thanks to our expertise in the markets we serve, we can help you navigate hurdles that may come up throughout the construction financing process.
Streamlined Loan Process
As a local bank, Texas Gulf Bank offers a straightforward, prompt loan review and funding process. All applications are reviewed in-house, helping borrowers avoid lengthy delays that often occur with larger banks. Our team is focused on creating a seamless and efficient loan process to support your project timeline.
A Century of Lending Experience
We have served the Southeast Texas Gulf Coast region for more than 100 years, supporting community growth with effective loan programs and reliable banking solutions. We understand the unique needs of regional homeowners and have helped generations of Texans achieve their homeownership dreams.
Local Customer Service
We are a relationship-based bank. Texas Gulf Bank proudly offers one-time close construction loan borrowers a single point of contact with a local lender to help guide them through the entire loan process. You’ll always know who to reach out to when you have questions.
Ample Lending Capacity
The risk of choosing a smaller, newer bank for single close construction funding is that they might not have the lending capacity or available lenders to support a borrower’s loan request. Texas Gulf Bank is an ideal choice for single close construction loans because of our strong lending capacity to meet your lending needs.
If you need a reliable lender for your new home construction and mini-permanent mortgage loans, Texas Gulf Bank is the best possible choice for a one-time close construction loan.
The Single Close Construction Loan Application Process
Whether you’re a first-time homebuyer or constructing your dream home for your retirement years, the streamlined Texas Gulf Bank loan application process offers an efficient path toward a one-time close construction loan.
Applying for a loan begins with an initial assessment to determine loan viability. We’ll talk to you about your project goals and financial situation to develop a lending solution that best fits your construction and mini-permanent mortgage loan needs.
Borrowers interested in a one-time close construction loan will need to submit key pieces of information, including:
- Completed loan application
- 3 years of personal tax returns
- Current pay statements
- 3 months of personal bank statements
- Lot assessment and information
- Builder’s contract
- Full construction budget
- Building plans and specs with timelines for construction draws
Once all required documentation is submitted, our loan officers will guide you through each step of the application process to provide a smooth and efficient experience all the way from application to funding, if approved.
Discover What Separates Texas Gulf Bank From Other One-Time Close Construction Loan Lenders
If you have the perfect location and floor plan for your dream home and are ready to begin the funding process, Texas Gulf Bank is eager to help.
As experienced one-time close construction loan lenders in Texas, we can provide a seamless, efficient loan process to secure your construction and mini-permanent mortgage funding needs.
Contact us today to speak with a loan officer about one-time close construction loans or to begin the loan application. We look forward to providing lending solutions that support your family!
All Loans Subject to Credit Approval