We went with a local hometown bank. It was the second bank we went to. The first bank had some just plain stupid requests. It would be best for you to shop around until you find a bank that gives you the terms that work best for you.

You may also ask your builder for suggestions on who he likes to work with. A bank that makes it difficult to get draws and has too many layers can be a major pain. A local bank with a good construction department can make things much easier.

We are using Homestreet. They had the best deal on closing costs and had no fees if your build takes longer than the term. They also had a 12 month term rather than 6-9 that most lenders had. Good Luck.

Definitely check around with local banks as some are easier to work with than others. You can read my blog about our adventures although I haven't kept it up to date after getting into the building process ... little time.

In short, we went with a bank that gave us credit for sweat equity such that we didn't have to put down alot of cash to secure the loan.

Good luck

Here is a link that might be useful: Lot59