Which party typically secures the construction loan for a project?

In the context of securing a construction loan for a project, the buyer is often the party responsible for obtaining the necessary financing. This is because the buyer, who intends to construct a new building or undertake renovations, has a vested interest in the project and its financial backing. The buyer typically approaches lenders to secure a loan that will cover the costs of construction, which must be in place before the project can commence.

Moreover, lenders assess the buyer's creditworthiness and the feasibility of the project before approving the loan, making the buyer's role crucial. While contractors and architects play significant roles in the construction process, they are not usually tasked with securing financing. The contractor focuses on executing the project, while the architect is involved in design and planning. The lender, on the other hand, usually provides the funds, but it is the buyer who initiates the process to acquire those funds. Thus, the buyer's responsibility in securing the construction loan aligns with their interest in the project and their need to finance its completion.