Mortgage Myth #15: You Can’t Close in a Timely Manner on a Construction Loan

The Myth

You can’t close in a timely manner on a construction loan.

The Truth

Construction loans don’t have to take forever. With a prepared borrower, organized builder, and lender who specializes in construction financing, you can often close within the same timeframe as a traditional mortgage.

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Why People Believe This

Stories travel fast in real estate. People hear about nightmare timelines—loans dragging out for 60, 90, even 120 days—and assume that’s the rule, not the exception. Builders also reinforce the fear when they’ve had past experiences with lenders who aren’t familiar with construction lending.

Detailed Breakdown

• Documentation & Prep: The biggest delays come from missing documents, incomplete plans, or a builder not being approved by the lender.
• Specialized Lender: Most banks don’t process construction loans daily. A specialized lender like Luminate Bank has systems, underwriters, and closing teams ready for this exact product.
• Timeline Reality: With everything in order, many construction loans can close in 30–45 days, which is on par with purchase mortgages.
• Proactive Communication: Delays usually happen when expectations aren’t set. A lender who guides both borrower and builder step-by-step can eliminate those surprises.

Real-World Example

A client of ours in Brookfield recently came to us after their original lender told them to expect a 90–120 day timeline for a construction loan. By switching to us, they closed in just 34 days, keeping their build on schedule. Their builder even commented that it was the smoothest construction loan process they’d seen.

The Bottom Line

The idea that construction loans can’t close quickly is outdated. The right preparation, the right lender, and the right process can keep your project on track—and help you break ground sooner than you thought possible.

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