Contractors
Comparing Construction Companies
First, you’ll need to choose a builder and then present the lender with specific plans for the home before applying for a construction loan. These will include blueprints, a detailed cost estimate for the home’s construction, and a contract with your builder that lists how much you’ll be charged for construction.
Are you planning to buy a piece of property at the same time? First, you’ll need to submit the purchase agreement for that land. If you buy a lot that the general contractor owns, that may streamline the number of documents you’ll collect, and the builder may simply include the lot price in your cost estimate.
To find the right builder, be sure to reach out to friends and family members who have used a contractor (preferably to build a new home and renovations). Some questions to consider asking them: if they were satisfied with the work done, if they met deadlines according to the timetable, and if the person and company were easy to work with, along with other questions you may have. You can also check your Better Business Bureau (BBB) and reviews online or in social media groups, and through this process, create a list of potential contractors.
Here’s a helpful list of criteria for your contractor vetting process:
- Their availability
- If they build in your community of choice
- If they build the type of home you want
- If they’re licensed, bonded and insured
- How they choose and pay subcontractors
- How effectively they’re able to get building supplies right now
- Once you’ve chosen your finalists, verify their licenses, check references, and their Better Business Bureau status.
Always start the process with a credit approval, shall we get started?