A mortgage is usually a transaction between a lender and a borrower, but construction loans add a third party to the mix: the builder. Your contractor is responsible for the completion of your construction plan on time and within budget.
Hire carefully when selecting your contractor. Review the contractor’s references and recent work they’ve completed. Check with your local builder’s exchange or associated for a list of licensed contractors. Make sure their plans and specifications are approved by the local building authority and a timeline has been agreed upon for completion.
Members 1st may request your builder’s work history and proof of insurance, plans, specifications, material list, a detailed budget, and a signed construction agreement that includes start and finish dates.