Buy only from reliable dealers. If You Use a Contractor If you plan to use the services of a dealer or contractor, take care to choose one with a reputation for honesty and good workmanship. Before deciding on a contractor, you may want to get bids from two or three different firms. Make sure that each bid is based on the same specifications and the same grade of materials. If these bids vary widely, find out why.
Many contractors offer package plans that cover the whole transaction.
Under such a plan the contractor provides all materials used, takes care of all work involved, and arranges for your loan. Your contractor can make the loan application for you, but you are the one who must repay the loan, so you should see that the work is done correctly. Understand What You Sign The contract that both you and the contractor sign should state clearly the type and extent of improvements to be made and the materials to be used. How much interest you will pay on the loan. How much you will pay in service charges.