If you have hired a builder to build your home you have already saved yourself a lot of trouble with lenders. Lending institutions are much more willing to give a loan to build a home to an individual in a contractual agreement with a reputable builder with whom the bank has preferably already established a good working relationship with. In other words, when the bank is more confident that the home will be built and that it will be built right, they are less apprehensive about lending the money. If, on the other hand, you would consider yourself an owner/builder (meaning that you personally plan on building your home) than you had better be prepared with the information that your lenders are going to want to see in order to make a decision regarding whether or not you are qualified to spend the sum that you are asking them to lend. There are some lending institutions with special programs for owner/builders that may be worth looking into. One such program is called the UBuildit system. In the UBuildit system the lender guides the client (you) through the process of building a house. The lender likes this program because it helps them to keep tabs on your progress and it provides regular times where they are able to quantify your project. It is good for you as the owner because you get the help of the lending institution and that extra push to remain on time and on budget throughout the building process. More benefits to the UBuildit and other similar home construction loans include things such as deferral of fees or payments until after construction is completed, rate protection, consolidation of home loan and construction loan paperwork so that you do not have to worry about multiple loan closings, etc.

A construction to permanent loan is a loan that consolidates both the construction financing and one for permanent financing in one loan. This means that you are not hit with twice the number of fees, and only one closing. Keep this type of loan in mind as you shop around for your construction loan. Other types of loans to keep your eye out for include lot and bridge loans. A lot loan is for the financing of the purchase of a residential lot for future construction of your primary residence or second home. The bridge loan allows you to access equity in your current home to use as the down payment on a Construction-To-Permanent loan.
The best preparation for a construction loan is the same as it would be for any other loan. You will want to be in a financial situation where you can comfortably handle the payments that you will have to pay and you will be better off in your credit score and history are as good as they can possibly be. Make sure that you take a couple months before applying for the loan to tie up any loose ends or to make corrections to your credit report.