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Amount of Money You Need: $_____________________________
Lender #1
Name ________________________________________________
Address ______________________________________________
Telephone _____________________________________________
Date Contracted ________________________________________
Lender #2
Name ________________________________________________
Address ______________________________________________
Telephone _____________________________________________
Date Contracted ________________________________________
Lender #3
Name ________________________________________________
Address ______________________________________________
Telephone _____________________________________________
Date Contracted ________________________________________
Comparing Home Equity Loans
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Lender #1 |
Lender #2 |
Lender #3 |
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| What is the annual percentage rate (APR)? | |||
| What is the interest rate? | |||
| Will the interest rate change? By how much? | |||
| What is the monthly payment? | |||
| What is the most your monthly payment could be if the interest rate goes up? | |||
| Does your monthly payment include taxes and homeowners' insurance? | |||
| What are the total points? | |||
| How much, if anything, will the mortgage broker charge you? If nothing, how is the broker paid? | |||
| Is credit life insurance included? If so, can you get the loan without it? | |||
| What is the total for all fees? | |||
| How many years do you have to repay the loan? | |||
| Is there a balloon payment? When is it due? | |||
| What is the actual amount you are borrowing? | |||
What is the total amount of all the payments you will make on this loan? |
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| Can you afford the loan? |
Amount of Money You Need: $________________________________
Contractor #1
Name: _______________________________________________________________________________
Address: _____________________________________________________________________________
Telephone: ___________________________________________________________________________
Date Contacted: _______________________________________________________________________
Contractor #2
Name: _______________________________________________________________________________
Address: _____________________________________________________________________________
Telephone: ___________________________________________________________________________
Date Contacted: _______________________________________________________________________
Contractor #3
Name: _______________________________________________________________________________
Address: _____________________________________________________________________________
Telephone: ___________________________________________________________________________
Date Contacted: _______________________________________________________________________
Getting Bids & Selecting a Contractor
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Contractor #1 |
Contractor #2 |
Contractor #3 |
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| I saw proof of the contractor's license.* | |||
| I saw proof of the contractor's insurance and bond. | |||
| I checked for complaints about the contractor. | |||
| The contractor gave me a detailed and itemized written bid that describes materials, labor charges, and start and finished dates. | |||
| The contractor offers warranties on materials and workmanship. | |||
| I have seen another job the contractor is doing that is similar to mine. |
*Not all states license contractors. Check with your local consumer protection agency or Attorney General.
Tip:
When comparing bids, be certain the bids are for comparable work -- the same
job and using the same quality materials. If the work isn't comparable, you
can't accurately compare bids. The lowest bid may not be your best choice.
Worksheet:
Before Signing the Contract
| Before you sign a contract, be sure it includes: | In Contract | Missing from Contract |
| Name, address, telephone number of contractor | ||
| License number of contractor | ||
| Detailed description of the work to be done that itemizes materials to be used | ||
| Specifics of materials to be used: manufacturer, model, grade (quality) | ||
| Starting and completion dates | ||
| A provision that the contractor will get all necessary permits | ||
| Warranties on materials and workmanship | ||
| Total costs for labor and materials | ||
| Total cost of this project | ||
| Your right to cancel in three business days if contract is signed at your home. |
(Some of this information was provided by the Federal Trade Commission at www.ftc.gov.).
Tip:
Never pay for the entire job up front or allow the contractor to get paid directly
from the loan without your specific approval. If the contract allows the contractor
to get partial payments as work progresses, the contract should say that the
lender can make the payment only after you and the appropriate local regulators
have inspected the work and are satisfied.
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