It's not just about choosing a contractor, it's about choosing the RIGHT contractor.
The contractor plays such an instrumental role in the process and cannot be emphasized enough how important it is to find a true professional.
Here are the minimum criteria to be eligible as the contractor for a HomeStyle loan. The contractor must be licensed, bonded, insured, provide a W-9, have $1 Million in liability insurance, and provide a contractor profile report.
They also must be adequately qualified and experiences, and have completed work of similar scope. For example, if you're looking to complete major renovations on your home, the contractor will need to demonstrate through references that they have successfully completed major remodels. Or if you renovation is focused on the kitchen, your contractor will need to demonstrate that he or she has successfully completed jobs of similar scope on a kitchen.
Finally, your contractor must be skilled enough to provide you with a thorough construction contract. The contract needs to itemize the specific work to be completed, provide time frames, state the agreed upon costs, identify all subcontractors and suppliers, establish a schedule for each stage of work completed and the corresponding payments, obtain any necessary building permits and provide an appropriate remedy for resolving disputes.
The contractor plays a huge role in not only the construction portion but the loan and the paperwork. In order to have a smooth process the contractor must be responsive, timely, experience, and a pro at his craft.