Building a home can be one of the biggest life changes you make. Not only is it a big event in your life, but also is one of the biggest investments that you will make. If you are planning on building a home, choosing the right builder can be very important. Not only should your builder be professional and experienced but also needs to be the right fit for your needs and situation.

1. Get Prepared Before You Search.

Just like when making an offer to a seller without a pre-approval makes no sense, looking for a builder without a pre-approval for a construction loan doesn’t either. You will want to get pre-approved so that builders you inquire on will know that you are serious.

Before you begin your search you need to determine what type of home you want to build and how much you are willing to spend. There are tons of builders out there with great credentials, but a first-time homebuyer is not going to choose a luxury custom home builder. Find a home builder that builds something in your price range.

2. Be Clear And Look For Experience.

When speaking with a builder, you want to be clear and concise with what you want in your new home so you can compare what each builder may offer. If you want hardwood floors but forget to mention this, then a builder can give you an accurate proposal.

Not only do you need to be transparent with exactly what you want in a home but you also need to ask questions. Ask the builder how long they have been in business? If it is a company with several builders, then ask how long the company has been in business and how long has its principals been building homes. The more questions you ask, the better you will see if the builder is right for you.

3. What’s Their “Happy Homeowner” Quotient?

If you are building in a certain community, ask around and see what the neighbors think of the builder. Several questions to ask would be, would they build another home with their builder, would they recommend their builder to a friend or relative, how is the builder’s service or how are they at communicating? If you are building on a single lot, ask the builder for references from previous homebuyers.

Another good source is to ask the experts. Lenders, Real Estate Agents, Building Material Suppliers, Builders Associations, and Code Inspectors work closely with builders and can tell you who to go with or who not to go with. Ask them who their top 3 to 5 builders in the area are and why.

4. Make Sure You Are Protected.

Make sure each builder you are considering has a license and is insured. There are several states in the country that do not have laws in place to make sure all builders are covered. Ask to see verification that you, the company, the builder, and the builder’s employees are covered if there is a loss or accident.

Another thing you want to make sure to have is a warranty. Many products you purchase come with a warranty, so why shouldn’t a large investment such as a home not have one? A promise from the builder is not enough, make sure your home should come with a long-term written & insured 3rd party warranty, not just a promise from the builder to perform.  This covers you even if the builder goes out of business.

Remember building a home is a big investment and you do not want just any Joe builder to come along and build it. Make sure you have gone above and beyond the steps mentioned here to make sure your builder is a professional with a clean slate.

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