One Time Closing

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PPDocs has created a One Time Closing loan document package for lenders that rolls construction and permanent loan financing into a single closing that saves time and money for every party involved in the project.

Delays may be an inevitable part of every construction project. Lenders should not contribute further delays into the project, but a typical construction loan package can require three or more time consuming closings, one for the land, a second for construction financing, and a third for the permanent loan that completes the project.

Learn how you can prevent delays and streamline the process with One Time Closing Loan Documents from PPDocs, Inc.

How it works

The Challenge

With standard construction loan financing, the lender negotiates and prepares separate loan documents for multiple closings. Each set of documents proceeds through underwriting and legal review before being sent to the borrower. This process introduces multiple delays and excess costs, and raises the risk of errors for all parties.

The Solution

Whether a construction project is in Texas or elsewhere in North America, all PPDocs One Time Closing loan documents go through a single preparation and review process. A knowledgeable staff member reviews every loan package and aids as needed. The lender eliminates errors and reduces risks to provide the most efficient services available for a borrower.


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.


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