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