Final answer:
Banks require forms, credit checks, and may ask for collateral or a cosigner before providing a loan. A local bank considering a builder a prime customer may offer favorable terms.
Step-by-step explanation:
In the financial capital market, banks require prospective borrowers to fill out forms regarding income sources and conduct credit checks on the individual's past borrowing.
They may also require a cosigner or collateral to secure the loan. For a well-established builder seeking construction financing, a local bank that considers the builder a prime customer may offer favorable terms.
By providing a history of successful financing and being considered a prime customer, the builder may receive a lower interest rate or more flexible repayment options.
Overall, the bank will likely charge the builder based on factors such as the loan amount, duration, creditworthiness, and the specific terms negotiated between the bank and the builder.