The first—and most important—step in the construction financing process is the initial consultation with an experienced lender. This conversation is designed to help you understand how construction-to-permanent financing works and determine whether it’s a good fit before moving forward.

During this step, you’ll review loan programs, estimated rates, and overall financing strategies. If you currently own a home and plan to sell it when your new home is complete, this discussion may also include how existing equity could be applied and whether a future loan recast could help reduce the final loan balance and monthly payment.

A pre-qualification is typically completed at this stage to confirm basic eligibility and help establish a realistic framework for next steps. This early planning helps ensure clarity and alignment before decisions are made about homesites, builders, or design.