Can I Use Any Lender?

Do your research on this one. Not all lenders can do new construction loans. Further more, not all lenders want to do new construction loans. Your builder will have a list of lenders that they will prefer that you use. In using the builders recommended lender, you will have a greater chance of getting approved, the process will be smoother because of familiarity with each other and usually that lender will be more flexible because of the same familiarity. Cons could be fewer loan options and possibly higher closing costs-but not always.

Talk to your builder, talk to one of their lenders and then talk to a lender that you were thinking of using. You might find that it will be best to the builders lender, then again, you might not want to.