Common advices before taking an Owner Builder loan
Being an owner builder demands your sense of responsibility and your strength to fulfil and manage your duties. But while you’re dutifully completing what has been asked, it is also wise to take precautions beforehand. It is wise to do so when it comes to getting an owner builder for yourself.
Some common advices and suggestions for you before you take up an owner builder loan are as follows:
- Collect and preserve all waiver of liens:
You have to keep a track of all the expenses you come across while the process proceeds. You obviously cannot remember these expenses and so you should record them for yourself. Now, this recording has to be a two – way process because when it comes to finance, you need proof whenever a financial issue arises. The best way is to get the supplier sign a waiver of lien.
Also, when the construction terminates, the company assigned to close your permanent mortgage demands all the documents to check whether your construction has been fully paid.
If you do not have a proper record and miss some of them, the company shall ask you to find them and this in turn, shall delay the process of mortgage closure.
- Theft of building materials:
Make arrangements to prevent the stealing of building materials. One, they are needed and it gets fussy to arrange some of them and two, they are expensive.
The bank might be of little or no help at all if theft takes place. If you still desire to continue your work then, you will have to use your own money to replace the materials. This invites loss and not profit.
- Do not remit a deposit:
When you are an owner builder, you not only supervise the work going on, but also maintain record of it. So, it is your duty to get in writing about the work somebody will be doing for you, even before the work starts. If at all, problems arise after the work has been done, you know whom to contact and if necessary, take action.
You have to utilize the loan you’ve received in an efficient and convenient manner. You definitely wouldn’t want any amount of money to go in vain. Make sure you pay the supplier or the service provider after the work is done and you are satisfied. Paying just after the former might bring loss.