How to Choose a Contractor
So you've decided to take on a fixer-upper (You may have even bought the house through Renasant's Renovation and Repair Loan!). Now it's time to come up with a game plan. One of the first things you will want to do is find a reliable contractor. Here are some tips on helping find the right person for the job:
Word of mouth can be the best form for referrals. Ask your friends, neighbors, co-workers or family members who have gone through renovations before. If possible, check out some of the renovation work in-person. Ask questions about the contractor and their work — Did they stay on budget? Was the work done in a timely manner? Would they use that contractor again for future projects?
If you find contractors online, ask for references and confirm them with a phone call. Find out if they are part of a national company or if they are a local business. Verify that they are actually a real business and not an online scam by confirming real references and their business address.
Once you narrow down your candidates, you will want to interview them in person at your home to make sure that they can handle the size and scope of your project. If the contractors only do certain jobs, make sure to obtain a list of who they subcontract work out to for all other needs such as plumbing, wiring, masonry, etc.
After meeting the contractors in person, get official project bids on paper or via email. Try to avoid the temptation to sign on the lowest bidder, as that can be a red flag. They could be desperate for work or uneducated in the realistic costs of materials and labor.
Before signing any kind of contract or making a down payment, do a background check on the contractor and business. Are they licensed in your state? Are they insured? Do they have any pending legal action against them? Ask them for a building inspection and talk through the permit processes that will be required for your project.
Ready to sign? Make sure the contract has all details of the project including costs of materials and labor, a list of materials being purchased, any anticipated subcontract work, and a project timeline with completion date.
And remember — you can always reach out to your local Renasant Mortgage loan officer or your real estate agent for referrals and suggestions.