🔁 Construction-to-Permanent Loans vs. Two-Time Close: What’s the Difference?
📝 How to Get Pre-Approved for a Construction Loan
From blueprints to front porch — here’s how it all works.
Building a home can feel overwhelming at first — especially if you’re new to construction loans.
But don’t worry.
The process is clear, structured, and designed to support you every step of the way.
👉 Here’s a simple, step-by-step guide to the entire construction loan journey — from pre-approval to move-in day.
✅ Step 1: Get Pre-Approved
Before you hire a builder or choose a floor plan, it’s smart to get pre-approved for a construction loan.
This helps you:
- Understand your budget
- Get clear on down payment requirements
- Lock in early financial planning
- Show your builder you’re ready to move forward
📘 We’ll walk through your credit, income, and available funds — and outline your total project budget.
✅ Step 2: Select Your Lot (or Include It in the Loan)
If you already own the land:
- You can roll it into the construction loan (as equity)
If you don’t own land yet:
- You can finance the land + construction in one loan
💡 We can help you structure either option.
✅ Step 3: Choose a Builder & Finalize Plans
To move forward, you’ll need:
- A licensed, insured builder approved by the lender
- Finalized blueprints
- Detailed specs (materials, finishes, etc.)
- A complete build contract signed by you and the builder
🔍 We’ll coordinate directly with your builder to collect documents and get them approved.
✅ Step 4: Appraisal & Underwriting
An appraisal is ordered based on the future value of your completed home.
Then we’ll:
- Review all paperwork
- Confirm budget and reserves
- Issue a final approval
Once everything checks out — it’s time to close.
✅ Step 5: Loan Closing
You’ll sign documents and close your loan.
If you’re doing a construction-to-perm, this is the only closing you’ll need.
Funds for construction are held in a draw account, ready for the builder to request in phases.
✅ Step 6: Construction Begins (Draw Process Starts)
As your home is built, your builder submits draw requests for:
- Foundation
- Framing
- Roofing
- Plumbing/electrical
- Interior finishes
- Final inspection
Each draw is verified by an inspector or appraiser to ensure work is complete before the next round of funding is released.
📅 We help manage this entire timeline for you.
✅ Step 7: Final Inspection & Move-In
Once the build is complete:
- The home is inspected and receives certificate of occupancy (CO)
- Final draw is released
- You receive keys to your brand-new home
If you used a two-time close, this is when you’d close on your permanent mortgage.
🏢 Why PRMI?
At PRMI, we:
- Guide you through every step — including builder setup
- Offer both one-time and two-time close construction loans
- Handle draws and inspections efficiently
- Help ensure your home is built right, on budget, and on time
You focus on the home. We’ll handle the loan.
👇 Ready to Get Pre-Approved and Start Building?
Let’s talk through your timeline, builder, and budget — and build a custom plan that gets you home.