Bank's Preferred Contractor Business References

As you shop for home financing, ask the financing institution for a referral to a contractor that has quality reference(s).

Financing institutions will inspect the home construction several times during the construction process. Their inspector will verify the contractor has delivered and built the home based on the original drawings and specifications. Once they have verified compliance, they will release and issue the next check which is drawn from your loan amount.

Bank's will have preferred contractors that have caused fewer or no problems for them during the construction process. It's a WIN-WIN when the lender shares their referrals with you for your review.

Home Builder and Property Developer Financing Alternatives

Property developers, real-estate brokers, large and smaller home builder-contractors sometimes have pre-arranged financing packages available if you build with them.

They may have banks and/or mortgage brokers that assist with home financing approval, construction and home loans that help their clients (property developers, real-estate brokers, home builders) provide a turn-key solution.

Keep in mind this may obligate you to purchase the property in their subdivisions. If you already have a piece of property, this may not be a financing solution for you.

How Much House Can You Afford?

Pre-Loan Approval

Before you start the home design process, home builder/contractor selection review, the land purchase process and/or realtor meetings; you must know how much house you can afford.

In the next few articles, we'll define the steps and information to gather for your pre-loan review. Local banks, credit unions and mortgage brokers are usually the first place to start.

Once your home designer, contractors, realtors and lenders have this information; they can help you define, design and build your new house.

Once you know this number, you can take action to

• select an affordable home design,
• choose property that complements your lifestyle,
• upgrade/fix your credit rating to provide the best home loan interest rate
  
• define the best construction process for your new home
  
• pick a home builder that's qualified to build the home design and
  
• review/choose the best lender and their terms for your financing.

Designing and building a new home is a long process. Everyone needs to know this number to properly serve your needs. So start here first.