What to check when you’re picking a home builder

Buying your first home is challenging in today’s market. Inventory is low, so finding a house that meets all your needs can be difficult. So what can you do instead? Build a home! With an FHA one-time construction loan mortgage, you can finance the purchase of a lot for your home and the construction over the life of the loan. It’s an excellent option for first-time homebuyers who want to build their home from the ground up when they can’t find a house in their market.

When you build a home with an FHA one-time construction loan, you must pick a reputable builder that meets deadlines and delivers quality work. But how do you know which builder to choose? You have to ask the right questions and do thorough background research before hiring them. As a mortgage lender, we’ve helped many people through this process and learned a few things about what makes a good home builder. Here are some things we suggest you check before choosing a builder.

• Customer reviews: Always ask to see customer reviews. Most likely, a builder will provide you with good reviews from happy customers. It’s great to read these over and understand the relationship the builder cultivates with their customers. But we also recommend searching for any bad or negative reviews to see if the company has a good reputation or how they deal with potential problems or unhappy customers.
• Home builders’ associations: Reputable builders can join the National Home Builders Association and state-level associations. These organizations often require additional certifications or qualifications for builders to qualify for membership. These qualifications help ensure consumer protection and builder professionalism and quality. Checking whether your potential builder is registered is always a good idea.
• Business associations: It’s also good to check if the builder is listed with local business associations like the Better Business Bureau or Chamber of Commerce. These organizations also require businesses to adhere to professional standards and offer business ratings. They may even document complaints or issues levied against the company.

Once you have completed your background research on the building company to determine if they are reputable and deliver quality work, we recommend reviewing the building process with them. If this is your first time building a home, the process can be confusing and difficult to navigate. An experienced builder will have a detailed guide for their unique process, including timelines, expectations, and budgetary concerns for you. Ensure you understand how they communicate during the building process so you can reach out if you have any concerns. Otherwise, you may feel frustrated and stressed if left out of the loop.

Choosing the right home builder is no easy task. You must research builders and find one that fits your needs and budget. But before you can begin building, you must get your mortgage financing. We can help with that. As an experienced lender, we can help you apply for an FHA one-time construction loan to finance your build. Call today and book an appointment with a PRMI loan advisor to see if you qualify for this program. (361) 765-0990