Notifications
Clear all

Switching from construction loan to regular mortgage—my experience

7 Posts
6 Users
0 Reactions
69 Views
tiggerevans133
Posts: 11
Topic starter
(@tiggerevans133)
Active Member
Joined:

Just finished converting my construction loan into a permanent mortgage, and honestly, it was a bit more paperwork than I expected. Basically had to get an appraisal, submit proof of completion, and re-qualify financially. Wondering if anyone has tips to streamline this process or avoid common hiccups?

6 Replies
coffee151
Posts: 7
(@coffee151)
Active Member
Joined:

Honestly, I get that the paperwork feels like a hassle, but from my experience, it's pretty necessary. I've built quite a few custom homes, and I've seen some folks try to shortcut or streamline the appraisal and proof-of-completion steps... it rarely ends well. Those checks actually protect you in the long run by ensuring the home's value matches your investment and that everything's built to standard.

That said, one thing you might consider next time around is working closely with your lender ahead of time to clarify exactly what documentation they'll need at conversion. Different lenders have slightly different requirements, and knowing upfront can save some headaches. Also, keeping detailed records—photos, inspection reports, receipts—can make the proof-of-completion step way smoother.

I know it's tempting to want less paperwork, but honestly, when you're dealing with something as significant as a home build, thoroughness pays off. Just my two cents.

Reply
davidknitter
Posts: 9
(@davidknitter)
Active Member
Joined:

"Also, keeping detailed records—photos, inspection reports, receipts—can make the proof-of-completion step way smoother."

Couldn't agree more with this! When we were finishing up our build, I initially underestimated how important those photos and receipts would be. Luckily, my partner insisted on documenting everything (to my mild annoyance at the time, haha). But honestly... it saved us a ton of hassle during conversion. Lesson learned: paperwork might be tedious, but it's your best friend when things get tricky.

Reply
tiggerdreamer409
Posts: 10
(@tiggerdreamer409)
Active Member
Joined:

I get the appeal of keeping every little receipt and photo, but honestly, in my experience, too much documentation can sometimes slow things down. Had a client once who got so caught up organizing paperwork that it delayed their timeline... balance is key, I guess.

Reply
tiggerevans133
Posts: 11
Topic starter
(@tiggerevans133)
Active Member
Joined:

Title: Went Through This Recently—Few Things That Helped

Just wrapped up this process myself about two months ago. Agree on the balance point above—over-documenting can definitely bog things down. A few quick points from my own experience:

- Keep a clear, simple timeline of major milestones and completion dates. Lenders appreciate clarity and simplicity more than stacks of detailed paperwork.
- Photos are useful, but don't go overboard. Stick to key stages like foundation, framing, roofing, and final finishes.
- Appraisal was straightforward for me, but I made sure to schedule mine right after major work wrapped up to avoid delays.
- Financial re-qualification caught me off guard a bit—didn't realize they'd re-check everything again. Make sure your financial docs (pay stubs, bank statements, etc.) are recent and organized to speed things along.

Overall, it wasn't terrible, just a bit tedious. If you're organized without obsessing over every tiny detail, you'll probably be fine.

Reply
Page 1 / 2
Share:
Scroll to Top