Important Things To Ask Your Builder→

/ Construction Loan 101/

Building a new custom home can be a great experience, as long as you are working with the right builder.  Your new home can take between 6 and 18 months to build, having the right builder is very important to your success.

As with all important things in life, it is essential that you do your homework.  When building a new home this should start on day 1 during your builder interview process.  It is important that you ask the right questions and feel very comfortable with not only the answers but with your builders personality as well.  

Working together with your builder on your new custom home is akin to marriage.  You will be working very closely with your builder during the process and I cannot under estimate the necessity for you to feel completely comfortable and have a great relationship though out the entire process.

 At the bear minimum you should make sure they are licensed, insured and the company is in good standing with the State your are building in.  You can also check references with the local Association of Home Builders, the Better Business Bureau as well as various other local resources like the Chamber of Commerce. In addition, I highly recommend asking the following questions:

How long have you been in the home building business?  While having decades of experience should not always be a prerequisite, working with a builder who has been in the business for a few years can definitely be a huge benefit, especially when it comes to specialty items.

How many home have you built and how many do you build per year?  Having a track record of building and the experience that goes along with it is very important.  Your first custom home shouldn't be your builder's.  Contrary to this however, working with a builder who has too much on their plate can be an early warning sign that they might be too busy to provide you with the level of service you should expect.

Can they provide you with current references?  Talking with some of their recent clients can provide you valuable incite as to the quality of the homes they build, the level of service they provide, the follow up and how they perform in comparison to their delivery schedule.  Visiting a model home is always nice, but most builders polish them up to look their best and they don't show how the house wears over time.  

How do you as a builder stand a part from other builders in the area?  Why would someone contract you to build a new home vs. the competition?  What are the biggest benefits I would receive by choosing you to build our new home?

What are the "Standard Features" of your homes.  What can I upgrade?  Do I have to go to a design center or can I shop outside of your company for features I may want?  How and when can we choice upgrades?

Can I choose my own house plans? Will I be meeting with a designer / architect to prepare the plans or do you only build form existing plans you supply?  If the later, what can I modify and what is fixed that cannot be changed? This is very important to know up front when building your "Forever Home".

When will I know the final price for my new home?  Will I be provided with a basic budget of house cost up front, allowances of options and how does that process work?  Knowing the final cost of your new home is very important.

Who specifically would be overseeing my new home while it is being built?  Will I have one direct contact that is consistent through out construction?  If that is someone other than the person you are speaking with, when can you meet him or her?

Will I have access to my new home while it is being built?  If so, will it be full access or at specific times only?  It is important to know the rules of engagement upfront.  Some builders will welcome you at any time, others prefer that appointments are made for liability reasons.

What is the the process for inspections and reviews prior to the final walk thru?  Knowing at what point you can address concerns and matters that may need to be corrected are very important.

How long will it take to complete my new home?  It is important to know what the schedule is, when your new house will be delivered to you and what happens if it isn't ready on time.  Getting your builder to provide a timetable is very important.

What is your warranty?  What does it cover and how long is the coverage good for?  Also it is important to know what are the expected service intervals..  Will I get a 12 month walk thru to correct miscellaneous items?  Who are the subcontractors and what will they warranty, how does that work, will the builder be involved, or do I as the homeowner contact them directly?

You will probably have a list of your own questions and you should add them to this list.  That is why constructionloan101.com was created, to help answer your questions and provide a resource for those of you looking to build a new custom home.   Remember the only stupid question is the question that is never asked!