Choosing a contractor is a vital component of a successful renovation loan. Here's some advice on how to make the best decision that you can.
It helps if the contractor has been part of a project in which the buyers were using a renovation mortgage. That means he or she will be familiar with the process, particularly the amount of paperwork involved, and the draw schedule.
Regarding the paperwork, contractors need to complete more than they are used to, and complete it in certain formats. It doesn't matter if they have been completing their paperwork the same way for 30 years, if it's a renovation mortgage, it needs to be done differently. A contractor has to be receptive to this. Someone who is proficient and organized, should not have a problem.
A contractor should also be able to provide a list of references and reviews. Make sure to read reviews and check references. The jobs completed should be of similar scope. You can also google search them online and look for reviews.
You can ask to pull their credit. This will show if they are responsible with finances, or if they are in debt from other jobs.
You should check civil records to see if they have any pending lawsuits.
You should always ask trusted professionals for referrals.
Follow this advice to pick a good contractor!