When it comes to qualifying for a construction loan, paying a fee before you find out if you will get the loan is an industry-wide practice. Legitimate companies typically charge a fee to process your application, and apply the fee to cover the costs of researching your credit worthiness. Advance fee loan schemes claim that payment of the fee will "lock you into the loan", so that you will not lose out to others competing for loans. Such hard sell tactics should be a red flag from doing any further business with the loan broker, especially if the company encourages you to send the money that day and are willing to pay for the overnight mail company pick-up at your home or office.