If your new construction project is heading around its final turn and looks at a completion date within 60 days, it’s time to start thinking about tidying up your permanent financing. Even if you don’t yet have a renter to place in the home when the property is finished, you’ll still need to replace yourgetting ready to close construction note on time.

Any extensions on the construction loan will mean additional interest charges which you’ll need to pay out of pocket or pay with the proceeds of your permanent financing. When you’re getting closer, your lender should be contacting you to tie up loose ends and update your file. What can you expect as your new construction nears the end?

One of the first things you need to do is decide whether or not it’s time to lock in your mortgage rate for the permanent loan. Some lenders allow you to guarantee your interest rate very early on but you won’t get the best available rates and a non-refundable origination might be charged and collected at the beginning of the loan process. Instead, you should think about locking in your rate within 30-45 days away from anticipated completion. This way you won’t have to pay extra for an extended lock.  Give yourself some wiggle room in case your closing is delayed somewhat and make sure you’re clear on who pays for a lock extension should you need it.

Within 30 days of your closing, all credit documents will need to be updated. You provided your initial pay check stubs and bank statements at the very beginning but all credit documents including an updated credit report will need to be less than 30 days old on the day you fund. Don’t wait for your lender to contact you to find out what you will need to update, be proactive and call ahead of time to make sure you close when you’re supposed to.