Yes they allowed us to fully build- no pre approval. 2 weeks ago we weren't (pre) approved, so they removed us from the contract and listed the house. But yes the $2k earnest we put down was 100% refundable... We're using the funds towards closing cost if all goes smoothly. We never knew pre approval was needed. We thought there was approval or denied. So being reviewed by UW had us to believe that was the approval process, and was needed once the house was finished. We were totally clueless!