General Contractors & Sub Contractors As Per Your Requirement

A General Guide for Beginners

The first step in getting your new home built is to speak with a bank representative. Ask lots of questions about construction loans and rates, closing costs, points, and other possible charges. Don't be afraid to shop around to find the best deal.

Once preliminary financing has been obtained, put your plans out for bid. Decide whether you want a general contractor to take care of the overall project, or if you will act as the contractor and bid out separate items to sub-contractors. Be aware, though, that the latter can become a nightmare for anyone inexperienced in home construction.

Once you have received bids, you'll need to carefully examine them to determine the best one - not necessarily the lowest priced one. Make sure the bidder has spelled out everything he intends to do so there won't be any big surprises later. And don't forget to get references on the bidder before making a final decision.

After choosing a general or starting contractor, you can go back to the bank and finalize the loan. In a construction loan, money is disbursed in steps as the building progresses. You pay finance charges only on the amount that has been disbursed during building. When the house is complete, the loan is converted into a regular mortgage.