If a developer goes bankrupt, and your funds are mixed in with the developer's cash, you may lose your money. If you're building a home with a developer, you'll want to put as little down upfront as possible. You should be using a contractor who can afford to use his money to build your home, not yours. Try to pay for things after they have been built. Wait until the contractor has actually spent that money at the job site.
C heck the specs.
Whether you're buying from a developer or hiring a contractor, you'll want to double check every single model, specification, and appliance going into your home. Make sure all of the windows are the right sizes, that you're getting the tile, countertops, faucets and hardware you really want. The best time to do this is before anything has been ordered. Changing the floor tile after it comes in can mean a six-week delay in your project. The best time to make a change is when you're still working off the plans.