Q: Shouldn't I look for a construction to permanent mortgage instead of two separate loans with two sets of closing costs?
A: No. A one loan close construction to permanent mortgage is almost always more expensive in the long run. Any good mortgage loan officer can show you why. The most common problem is that if you run over on the cost of construction (and you probably will) you cannot get more money from a single close construction loan/permanent mortgage whereas you can with a separate construction loan.