Make sure you have all required permits before work begins.

Renovating or building onto your house can be a fun and exciting experience, but problems with permits, local zoning laws and contractors can quickly lead to cost overruns that will likely turn this excitement to frustration and disappointment. To avoid such difficulties, it is important to make informed and intelligent decisions from the very start of any home improvement project.

Deborah Saunders-Carlton has been a construction loan officer for American Mortgage Professionals, Inc. for ten years, and specializes in mid-range loans for the home building and remodeling. Here she offers advice for homeowners hoping to control remodeling budgets:

• Clear permits and zoning.
  Before a contractor arrives at your house to start work, you need to go downtown to make sure that you have all appropriate permits for your building plans and that the zoning in the neighborhood will support your project.

• Get pre-approved for a loan.
  It's important that you get pre-approved for a loan so you'll know exactly how much you have to spend on your rehab or new construction costs.

• Get bid in writing.
  When you hire a contractor, always get the bid in writing. The written bid should include the deadline for completion, as well as what is and is not included in the job.

• Avoid special order items.
  Saunders-Carlton advises you to stay away from special order items, which can cost you extra money if they arrive late. A better solution is to visit home improvement stores and choose from items on the shelves, as this will save both money and time.

For more information about contractors and home remodeling, check out the following organizations or websites:

National Association of the Remodeling Industry
www.nari.org

ImproveNet
www.improvenet.com/index.html?src=contractorhell