​​​​​glossary of  Terms for One Time Close Loans

One Time Close Terms

  • Architect - One who has completed a course of study in building and design, and is licensed by the state as an architect. One who draws up the architectural plans.
  • As Built Appraisal – Appraiser assigns a valuation based off of Architectural Plans and comparable sales
  • Builder Budget – Cost to complete project
  • Builder’s Risk Insurance - Insurance coverage on a construction project during construction, including extended coverage that may be added for the contract for the customer's protections.
  • Construction Contract - A legal document which specifies the what-when-where-how-how much and by whom in a construction project.
  • Clear Lot Inspection – Property is inspected prior to closing to insure no work has commenced prior to loan closing
  • Clear to Close – issued once file has completed underwriting and is ready for closing
  • Contingency – a percentage of the cost to build that is added for change orders
  • Draw Schedule - The amount of progress billings on a contract that is currently available to a contractor under a contract with a fixed payment schedule
  • Draw Inspector – Third party individual that will track and monitor the build so that future draws can be issued to the builder
  • Financials – Income and asset information provided to lender to prequalify your loan
  • Modification – Executed documents once construction is finished to modify your note to the permanent mortgage
  • Property Survey - A survey to determine the boundaries of your property
  • Rate Float Down – ability to take advantage if rates lower during construction for a fee
  • Rate Lock – Securing the permanent mortgage rate