smaller banks totally “get” custom builds way better than the big chains.
I’m with you there—tried working with one of the big lenders once, and they practically had a meltdown when I mentioned radiant flooring. It’s wild how some just don’t grasp that builds don’t always follow a cookie-cutter timeline. Communication helps, but sometimes it feels like you’re teaching them how houses even get built.
it feels like you’re teaching them how houses even get built.
That’s the truth. I’ve had loan officers ask if “rough-in” was a typo. The big lenders just aren’t set up for the curveballs a custom build throws. Smaller banks usually have someone who’s seen it all—makes life way easier.
You’re not wrong about smaller banks being more flexible. I’ve had similar headaches—one time a lender flagged “blocking” as a typo in my finish schedule. It’s wild how much you end up explaining basic construction lingo. But hang in there. Once you find a loan officer who actually gets the process, it’s like night and day. Just keep documenting everything step by step, especially when you’re at rough-in or finish stages. Makes it easier to justify draws and avoid confusion down the line.
WHAT HAPPENS IF YOUR HOUSE ISN’T FINISHED WHEN IT’S TIME TO SWITCH LOANS?
That’s spot on about documentation—if you don’t have every step backed up, you’re basically at the mercy of whoever’s reviewing your file. I’ve run into the same issue with terminology; once had to explain “LVL” beams to a loan processor who thought it was a typo for “level.” It’s wild.
One thing I’d add: don’t assume even a “flexible” bank will bend if you’re behind schedule. When I hit delays (thanks, rain and a backordered window), the bank’s patience wore thin fast. They started talking about extension fees and even threatened to freeze draws until I could prove progress. That’s where having photos, receipts, and a running log saved me. It’s tedious, but it’s way easier to justify your position if you’ve got everything in writing.
Honestly, I wish I’d known how rigid some lenders get about “substantial completion.” It’s not always clear what that means, and they can get picky about what counts as finished. If you’re not careful, you end up paying interest on a construction loan longer than planned... and that gets expensive.