Many borrowers expend all their savings on their land and then their plans and permits, leaving themselves cash poor. Generally, once you put cash into a project, you can't get it back out until a year after it is built. Borrowers in this position often have trouble getting a loan due to poor liquidity. I should get my lot, plans and builder before worring about a construction loan. Unless you are building your project completely from savings, you will rely on funds from a lender.
Many consumers plan their whole project before consulting a construction lender.
They invest years of time and thousands of dollars, only to discover they made vital mistakes along the way, restricting the financing of their project or stopping it altogether. A knowledgeable loan officer can engineer your financial picture over time to meet lender guidelines, ensuring qualification for the best loan programs. I should buy my lot, and then decide what to build. The lender evaluates the property for finished market value and conformity with the neighborhood. Overbuilding or underbuilding for a neighborhood can cost you cash and equity.