Is it better to get a construction loan and end-mortgage all in one shot (one-time close)?
There are advantages and disadvantages with this arrangement. The advantages are that there could (not always) be some initial savings in closing costs. The big disadvantage is that the borrower gets locked into a long-term interest rate that is usually higher than what the borrower would get if they merely refinanced their construction loan with an end-mortgage (two closings). The higher interest rate with a one-time close can add up to thousands of dollars over a few years.
