Building your dream home can quickly turn into a nightmare of unmet schedules, cost over runs, shabby workmanship and endless arguments.

I have been originating and closing construction loans for a good number of years now and I have experienced clients dumping contractors and even contractors dumping clients. By that time in most cases the job is running behind schedule and over budget. Choosing a new contractor at this stage is difficult and further delays are inevitable.

Spending a little more time and paying a little more attention to the process of choosing your contractor can avoid all this.

In most cases the writing is on the wall from the very first day, but wishful thinking gets in the way of logic, which leads to disaster down the road.

A good number of articles have been written on the subject, and you should try reading at least one or two well before making your choice of a contractor.

This article is based on my experience and personal observations. You may whish to write the main points down and add others that I have not covered and indeed add to the list from your own experience of dealing with people. This way you will internalize the subject and become a naturally better judge of those you do business with.

During the processing of your construction loan, some information is collected from the contractor but that should not stop you from your due diligence. Here is a list of items to check and to look out for:

1- If your state requires a state license, ask for the number. Don