Which document separates a regular real estate loan from a construction loan?

The primary document that separates a regular real estate loan from a construction loan is the loan agreement or promissory note. A construction loan typically includes specific terms related to the construction process, such as disbursement schedules tied to project milestones, while a regular real estate loan focuses on purchasing an existing property. Additionally, construction loans may require detailed project plans and budgets, whereas traditional loans do not.