Page 16 - What You Need to Know to Find the Right Builder

Chapter 4

Pre-contract

Funding:

If you haven’t already, now is a good time to contact your lending institution.
Getting a preliminary agreement in place with them could prevent a lot of wasted
time and embarrassment down the road. It’s also a good idea to know exactly

how much of a realistic budget you have available to work with. If you don’t have
a bank or loan company that you’re familiar with, your builder may be able to

recommend someone for you.

Site Locations:

Finding land or a lot site for your home can be challenging. If you haven't yet
located land, you'll want to work with a real estate broker in the area who
understands the ins and outs of lots and land in your desired area. If you're
building in an area new to you, you'll want to get a good picture of the climate as
well — average snowfall and/or rain totals, temperature ranges, hours of daylight,
potential of winds from strong storms.

Here are some of the factors to consider when looking at land:

• Perk Test. The land you intend to purchase should have had a successful
soil analysis or "perk" (percolation) test completed prior to purchase. This
test involves digging a test pit to a certain diameter and depth, pouring in a
volume of water then timing how long it takes for the water to drain away.
A perk test needs to be conducted by a certified professional and submitted

to the permitting agency. Getting your perk tests done as early in the
process as possible is important, because often septic placement can affect
where the home can be located.
• Rules and Regulations. Many developments are structured as
neighborhood associations. Your broker will be able to identify subdivisions
where various home styles may or may not be permitted under the
covenants and if there are any annual fees associated with building on

those lots. It’s important to have a good idea of the size and style of the

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