SRT, here are the main things I look for:

Good interest rate
One-time close
Lack of junk fees and add-ons
Good terms (no pre-payment penalty, etc.)
Trusted institution (although who knows what that means these days!)

Randall, you are right. Going through a big builder is definitely easier than trying to build your own design. YOUR design isn’t a proven commodity. A builder’s stock plans are, to some extent.

In hindsight — given the lending climate — I don’t think we could have found a mortgage lender to work with us had we decided to act as our own general contractors.

Perry B, it was tough. Even looking at bank web sites and advertising doesn’t help much right now. So many of the lending institutions that still advertise offering construction loans, don’t!

Ultimately, we found our loan by using our trusted mortgage broker, Lon Stone. He helped us with the last construction loan and this one as well. We weren’t nearly as pleased with the results this time, but I don’t think that had much to do with Lon’s service. He worked hard for his commission.

Thanks to all of you for the kind response.

Trying to get a construction loan during a recession really stinks. The banks have our bailout money, but they don’t want to loan it back….

BTW nice new look and integration.