Mortgage Calculator | Credit Cards iconSmall Business | Your Money | Construction | Entrepreneur | Student Loan

money smart personal finances

Selecting Your Builder for Your New Home

Once you decide to build your own house using a licensed builder, your next step is to select the right builder for you. You will want to start by looking at several builders and some homes that they have built.

Steps in selecting the builder for your new house.

Look for builders in the Sunday paper.

Drive around and look at developments that you like.

Attend builder open houses. Examine the details in the model home.

Ask how long the builder has been in business.

Does the builder communicate effectively?

Ask to see the builder's license.

Does the builder have completed homes in the price range you are considering?

Ask to look at houses that the builder has completed that are similar to what you want.

Ask the builder for references and call them. Ask about on time completion and quality of work.

Whet type of construction loan does the builder use? Some builders will get the construction loan in their name and sell you the finished house when it is finished. Other builders will require you to get the construction loan and have the lender pay the construction draws to the builder.

Ask the builder what bank he works with and then contact the bank to assure that he is in good standing. Construction lenders usually keep close tabs on the builders and generally if the bank is willing to work with the builder, the builder is probably sound.

Contact the local builders association. Is the builder a member in good standing?

money smartLendingTree Mortgage DropDowns