 Besides the underwriting guidelines detailed above, most lenders attempt to mitigate their risk in a variety of ways.The first involves due diligence on the general contractor, architect, soil upon which the property is to be built, environmental inspections, and appraisals.Then, while the construction process is ongoing, the lenders carefully inspect progress both to ensure construction is proceeding smoothly, as well as to ensure that all workers are being paid so that the security of the loan by the real estate is not violated by a mechanics lien.