What To Do Before Meeting With A Custom Builder

After a lot of research and consideration, you have finally narrowed down your list of possible home builders. It is time to meet each professional and ask them several questions to decide who will be your partner in the next project. That is why it is essential to choose someone you can trust and that has the right qualifications (Kookaburra Homes – Stepney fit the bill). Here are five things you should do before the first meeting with a builder.

Do Your Research

The first thing you need to do before meeting a builder or interacting on Facebook is researching and understanding their background. Make sure to see their previous projects and visit these houses. Figure out what you like and don’t like about these buildings. Are these houses similar in style and size to what you want? How do these constructions look after 5 or 10 years? Ask for the details about a particular project, including challenges, costs, time and distinctive features, then prepare to point out your requirements for your home.

Ask Relevant Questions

The first time you meet a building professional can be overwhelming. So make sure to prepare a list of questions you want to ask, including:

  • How much time do you need to develop a cost estimate?
  • Who will be involved in this building project?
  • Are you experienced in building energy efficient houses?
  • Do you use long-lasting and sustainable building materials?

Say Your Preferences

If you have come up with a few ideas, it’s better to show a building contractor what you have in mind. If possible, bringing the actual visuals of what you need in your dream house can be useful in helping your designer and builder to get an overall understanding of what features you want to add in this project. It can also determine if the possible contractor has the same vision as yours.

Ask For References

All reputable builders should give you references from their previous clients. Before meeting them, make sure to ask for a few recommendations, both new and old, and visit these places to check. Ask these homeowners about the durability of their homes as well as the communication methods, cost estimate, response times, and responsibility of the builder.

Take Field Trip

Though building photos on Instagram might be appealing, it is essential to see the craftsmanship of the builder in person before you decide to sign the contract. Make sure to see both old and newly built houses. Focus on even the smallest details and find out if there is any visible damage due to moisture such as cracked flooring, chipped paint and water stains on the ceilings or walls. Ask these owners how they feel when working with the builder too.

Constructing your dream home is an exciting and rewarding process. But like any other significant life decision, it is essential to consider available options carefully. Meet with all potential builders before making your final decision.

Where To Get Residential Construction Loans

A residential construction loan is basically a credit line that the lender sets up on behalf of the homeowner for the payment of subcontractors and suppliers, who really cannot afford to wait until the house is finished for payment of labor and materials they have provided. Before a construction loan can be obtained, though, an application and approval for a residential mortgage must first be made. Residential construction loans can be availed through many different sources. Here are some of these sources and their attributes.

The Builder

The builder hired for home construction can finance the construction on loan. This will usually mean a higher price quote on the house since the builder gives the quote to its lender before the duration of construction is known. The builder has to assume a longer period in order to cover the risk. Taking this option assures the homeowner that the builder is financially capable to accomplish the job. In addition, since the builder is paying interest on the construction loan, it is spurred to get the job done quickly.

Banks

Banks (and other lending institutions, as well) consider residential construction a market for excellent business and are always hungry for such ventures. They offer a range of loan offerings with respective rates and terms to choose from. However, these institutions are often wary to stick their neck out considerably without some guarantees.

Construction loans are called story loans because bankers or other lenders would want the story of the construction plans before they are willing to loan the money. They would want to know details on where the home will be built, how it will be built, schedules, the cost, and estimates – a complete construction package of the home proposed for construction. Banks are frequently very hesitant to grant the loan without the involvement of a licensed contractor. Lastly, chances of getting the loan are upped if the homeowner actually owned the land, which the bank will then take as collateral.

Construction Companies

Many construction companies offer financial packages for residential construction loans packed with incentives. However, this does not make them the best deal in the subject of residential construction loans, and homeowners would best compare these offers with that of other opportunities.

Government Assistance Programs

There are many government programs that offer residential construction loans or assistance or both in the U.S. Such programs include offers for down payment assistance for low to moderate income home purchasers and special home loan programs for veterans, teachers and law enforcers. State housing banks propose different homeownership programs like fixed-rate mortgage loans at lower interest rates than regular home loans.

Some programs fund local public agencies and private entities to produce affordable housing or make loans. The Mortgage Credit Certificate (MCC) Program involves income tax reduction and net earnings increases, which thus allow a buyer to easily qualify for a mortgage.

Private, government-sponsored enterprises like Freddie Mac and Fannie Mae also exist to provide financial services and products through savings and loans and mortgage bankers to low to moderate income families, especially in rural and underserved areas. Freddie Mac and Fannie Mae extend their services online in providing tutorials and other resources on home purchase and loan processes.