Why Permits Matter More Than You Think




Permits aren’t just a formality—they’re legal requirements that can make or break your construction timeline. Without them, your project can face:




- Stop-work orders




-Fines or legal trouble




-Delayed inspections




-Frustrated subcontractors




-Higher holding costs




And that’s not even counting the impact on your bottom line when a timeline slips and loan interest keeps accruing.




Know Before You Borrow: Every City Is Different




Builders in McAllen might see faster permit processing than in Mission or Brownsville, where backlogs can stretch for weeks during peak building seasons.




Pro Tip: Always check local turnaround times for building permits before finalizing your start date or applying for a loan




Some cities in the RGV have made progress in digital permitting, but others still rely on in-person submissions or slower internal processes. Knowing this can help you align your construction timeline with your loan draw schedule.




Steps to Take Before Applying for Financing




If you're getting ready to apply for a construction loan, here are steps you can take to stay ahead of permitting issues:




1. Contact your city’s building department early: ask about current timelines, necessary documents, and review procedures.




2. Submit a complete and detailed application: missing documents are one of the top causes of permit delays




3. Budget for delays—even short ones: build in a few weeks of flexibility in your timeline and loan term.




4. Talk to your lender about permit-dependent draws: at Capital Insiders, we help structure loan draws in a way that gives you breathing room if city delays occur.




What Lenders Want to See




Lenders want to know your project is realistic, timely, and buildable. Showing that you’ve done your homework around permitting gives you an edge and reassures your lender that you're a low-risk, high-competence borrower.




Final Word




When you’re ready to build, the last thing you want is paperwork holding you back. By learning about your city’s permitting process and preparing ahead of time, you’re not just protecting your timeline, you’re protecting your profit.




 




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Please give us a call at 956.928.1111 or email us at info@capitalinsiders.financial




Rio Grande Valley