I am guessing there are different types of loans and different processes out there. We are just getting started on our build, but my lender said that 45 days prior to occupancy permit we can lock in a lower rate if one is available to refi the construction loan to a conventional (construction loan rates, for us, were about .5% higher than prime conventional rates). If lower rates are not available and we do not want to refi, our construction loan is interest only for 12 months then automatically converts to a conventional at the same rate. Our lender allows the same appraisal of land + project to be used if we want to refi the loan. If you can get a better rate with a refinance, simply calculate the yearly savings in interest vs your closing costs to refi the loan to find out a "break even" analysis - how many years will it take for you to break even on closing costs vs interest savings. If it makes sense, do it...interest rates likely will not be going anywhere but up in the next few years.

You will need whomever is doing the construction draws to do a final inspection to certify completion. You will need a Certificate of Occupancy issued by the building department. The builder will need to provide a release of lien indicating that he has been paid and has paid the subcontractors.

Now that the home is completed, you do have the option of using the permanent financing provided in by your current lender or you can finance the property using another lender. The second option will require all of the above and a new appraisal.

When we built our home, we ended up using another lender for permanent financing.

Thanks! For permanent financing we are going to stick with the same bank that we used for our construction loan because we were able to lock in Prime rate by opening a checking account. How long did it take for you to close on your permanent financing loan after you got your CO and closed your construction loan? I'm worried about the bank dragging their feet after we worked so hard to build in a snowy winter.

How long? It's on a case by case basis. Some lender's are more efficient than others. The lender won't be in a hurry and you will. Squeaky wheel will get the grease. Make sure you have the numbers of all of the contacts at the lender. Call or email on a daily basis. Get them the documents they need within hours. Call for a follow up to make sure they received them. Send confirmation emails. It's like closing any other loan. You have to stay on top of them or you will become a victim.

Oh we're definitely in daily contact and send back forms immediately! I was just curious about other people's timelines and experiences--2 weeks, two months....