GLAD YOU'RE HERE!

Welcome to Home Loans! Our guides show you the best way to purchase your next home. Since owning a home is a lot more than simply calculating your mortgage, we make sure to provide plenty of extra content for all things home related both serious and fun!

Choosing the Right Contractors

Posted May 31st, 2010
by HomeLoans.org Staff (no comments)

E-MAIL More

When you take out a second home loan to make some improvements to your home, you’re going to have to work with some building contractors. Unless you’re doing all of the work yourself, the terms of the home loan will likely require you to use a licensed contractor for the work. Using a licensed contractor is a good start, but it won’t guarantee that the work will be high quality.

If you want to get the best possible work done for the best possible price, there are some specific steps you need to take:

Find someone with a good reputation in your community who does the sort of work that you need to have done. The contractor should ideally be someone who makes her living doing this work, and who does the work year-round. They should be licensed by the state and have all of the necessary insurance coverage.
Consider asking for community references, such as from your local BBB or Chamber of Commerce.
Check with your state’s licensing department to see if the builder is licensed as a contractor. Make sure they’re not on the state debarment list, which you may have to request from your state via telephone or by visiting a state office.
Ask for references from former customers. A good contractor will be able to provide you with the names and contact information of several satisfied customers.
Shop around. Don’t just hire the first contractor that gives you an estimate. Make sure you find one that not only meets your budgetary requirements, but that also really understands the vision you have for your home improvements.
Pay careful attention to the contract. Understand how payment disbursement will work, and what the terms of the work will be. Know what kind of warranty is stated in the contract, and know what kind of warranty is implied and customary in your state.
Maintain good records. As your contractor does the work, make sure you keep good records of activities and transactions. If there is a dispute down the road, you want to have all of the necessary records to prove your point.