I looked around the board and didn't see this question on the first 4 or 5 pages. If there is one, please point me in that direction.

We're about to start the approval process on building a home and the question has come up whether to go with a one time close and lock in the interest rate now or do the conventional construction loan and refinance into a mortgage.

We've read a ton of stuff on the internet about pros and cons but I figure I'd ask all-knowing TexAgs before we get too far along.

Any thought or suggestions on which of the two is the better way to go?

Not many lenders doing one time close. The best I've found is RBFCU and their rates aren't that great.

One time close has no prepayment penalty so you can pay it off, pay it down or refinance it anytime after modification. With a traditional construction loan you'll need to requalify, have a new appraisal and pay closing costs again after completion.

My email is on my profile if you'd like to discuss one time close.

RBFCU is really good to work with. We have a 3.5% 30-year one time close through RBFCU finished in April, rates are a little better now. It probably isn't that big of a difference either way cost wise. We did a pretty unconventional design on an urban infill lot with a small builder, and the process for all of that considered was really smooth.

We did a one time close because the rates were going up when we started our build. They came back down when it was time for our one time "true up", so we decided to refinance instead.

I'm not an expert, just telling an option.