The Advantages of PPDocs' One Time Closing Documents
Simplify the construction loan process while maintaining flexibility
With One Time Closing loan documentation from PPDocs, the borrower participates in one closing and makes only interest payments during the construction phase of the project, with either a fixed or floating interest rate.
Upon completion of the project, the documents convert the loan to traditional mortgage financing with both principal and interest payments, again with either a fixed or variable rate.
Those documents also include options to roll the land purchase into the initial financing, or to refinance existing land loans and to use equity in the land for the down payment.
Lock in the interest rates up front
PPDocs documents establish interest rates for both the construction and the permanent loan at the same time.
This helps the borrower to avoid uncertainties due to interest rate fluctuations during construction and to make more concrete post-construction payment projections as soon as construction begins.
With this structure, lenders are better able to market their loan products by offering early rate locks.
Reducing closing costs
The three or more loan closings that are typical for construction financing add separate closing costs to the project for each of those loans.
The PPDocs documents facilitate one closing with substantially lower costs for all parties.
Lenders enter data only once and all loan documents are generated simultaneously, saving additional time and expense for the lender while reducing the risk of errors.
Going Beyond the One Time Closing
Maintaining Regulatory Compliance with PPDocs One Time Closing Documents
The FDIC has reined in construction lending in order to prevent the cycle of speculative overbuilding that plagued the industry in the 1990’s.
The PPDocs One Time Closing documents were drafted by a legal and financial team that has years of experience in preparing loan documents that are in full compliance with federal and local regulations.
The documents are regularly audited for compliance with lending and underwriting standards and to help lenders to assess and control their financial risks in every construction project.
This process also gives lenders assurances that all necessary documentation and materials from the builder and the borrower are in place before the loan closes.
Managing Loan Modification
A project can change even with the most thorough planning, and that change can lead to loan modifications.
The PPDocs One Time Closing documents can be readily modified to account for unanticipated contingencies with a single second closing.
As with the initial one time closing, the PPDocs documents enable a simple modification closing that saves time and money for all parties.
Staffing and Superior Service
PPDocs, Inc. assigns an experienced staff member to each lender project to review and verify the quality and information in every One Time Closing package.
Staff members are available for consultations and to answer questions, making the document preparation process easy and error-free.