1. Find out if you will be able to handle the payments for the loan - to do this all that you need to do is get pre-qualified. When you are pre-qualified for a loan you will be able to see what your monthly mortgage payment would be before you take any risks of purchasing land or a property.

2. Shop around for a lender - Just as not all lenders can offer you the same interest rate, not all lenders are equally experienced when it comes to giving construction loans. You need a lender and loan officers who either have construction programs or have the experience to help you through a more complicated construction loan.

3. Know the interest rate lingo - Your interest rate can mean a difference of tens of thousands of dollars. You need to know about the interest rate and conditions that you are agreeing to before signing anything. Locking, variable, fixed, long term, non-competitive, adjustable, etc. are all just a few terms that can be used to describe the terms of your rate. Know what you are getting into. Avoid the ever popular "bait and switch" technique that is used by some lenders. This is when you are baited into the loan with an appealing rate or payment, but are then switched to a much less desirable payment situation after a given period of time.

4. The construction loan industry is not the same today - With today's technology, you have the ability to obtain a construction loan from the best banks in the country, even having those banks compete for your loan, and sign your loan documents at your local title company or escrow office. This is a huge benefit to you as it allows you to have the most competitive construction loan available, not just what your local bank's loan officer can offer you. A loan broker acts as the middle-man for hundreds of banks all around the country and his or her services will not cost you anything extra. The loan that you should apply for is simple; ask for the lowest rate and a "one time close" for a specific period of time that you think you'll be living in the home you will be constructing.

5. Be prepared with your paperwork - Just as you would prepare for a job interview you should know what you will need ahead of time to qualify for your loan. The most important thing to get under your belt is to complete the loan application. From the loan application your lender can determine whether or not you will qualify.

6. Credit score - You are probably aware of the importance of a credit score when it comes to applying for a loan, but did you know that something as small as your credit score can mean the difference between approval and denial for a loan and that in some cases lenders can look past how much you make and decide whether to lend you money based mainly on your credit score? When thinking about the "little things" to consider when applying for a construction loan, payments and debts that affect your credit score are definitely worth contemplating.