Home improvement has many benefits. It can be a wise investment, increase the overall value of the house and just plain make you feel better. But there are dangers: unscrupulous contractors, shoddy work and fraudulent contracts, to name just a few. Like all other important issues, knowing what to look for and what questions to ask can help you avoid all sorts of problems.

Here are some tips to avoid being taken by home improvement scam artists:

• Don't sign any forms unless you are absolutely sure that they do not bind you to anything contractually; have someone else explain it to you if you are unsure.
  
• Don't be rushed into anything; if it is a good deal, it will be there tomorrow.
  
• Don't sign a contract that has blank areas; scammers will often fill those in with different numbers than you agreed to orally.
  
• Make sure the contract has this legal copy next to your signature:
  

Important Notice: You and your contractor are responsible for meeting the terms and conditions of this contract. If you sign this contract and you fail to meet the terms and conditions of this contract, you may lose your legal ownership rights in your home. KNOW YOUR RIGHTS AND DUTIES UNDER THE LAW.

• Consult an attorney before you sign if you have any doubts, because once you sign, the contractor can legally fix a lien on the homestead, which can result in the loss of your home in some cases.

• If they do fix a lien on your home, make sure a notary is present; if one is not, that should be a big warning.

• Ask for references, do basic homework, compare prices and look at previous work by the contractor.

• Don't sign a completion certificate until the work is done.

• Beware the "low-ball bidder;" verify that everything that is required is included. The law requires payments for all contractor work over $5000 be deposited in a financial institution; be proactive and keep track of where your money is going.

Basically, if you’re careful, you won’t have anything to worry about. Feel free to contact one of our loan officers here at North Dallas Bank at 972-387-1300 if you have any questions. We’ll be happy to help!