Here Are Three Things to Consider Up Front
Building your own home is an incredibly exciting experience. The opportunity to design your home exactly as you like it offers numerous benefits but also poses unique challenges. If you’re planning to build your home in the near future, here are three important things you should know before beginning the project:
Find the right builder. From level of experience to price point to expertise in your desired style, make sure the builder meets all of your criteria. A great way to determine if a builder’s work is up to your standards is to talk to past customers and even tour their homes. If you identify poor workmanship or cheap materials there, you may want to look for another builder. Also, don’t forget to ask about warranty, insurance, and licensing (if applicable), and research their reputation with local industry organizations, like the Better Business Bureau or Home Builders Association.
Set a budget and stick to it. Just as you’d have an ideal price in mind when buying an existing home, the same goes for building a new home. Start by asking yourself how much home you can afford, and work with your designer and builder to design your home around that budget. If you already have the design in mind, be willing to forego expensive features that may be outside of your price range. Once the design and costs have been determined, stick to them. Avoid making last minute upgrades or changes to the floorplan to ensure you don’t spend more than what you have budgeted.
Get the right type of loan. Construction loans are different from traditional mortgages because they provide funding not only for the purchase of the home but also for the construction of the home. One option for this situation is a Construction-to-Permanent loan, which provides financing for both the home construction and home purchase all-in-one. Depending on your situation, you may want to choose a construction loan that’s separate from your mortgage, but you will have to pay two sets of fees, have two closings, and requalify for a new mortgage once the home is built. Contact me to learn more about the benefits of a Construction-to-Permanent loan and determine which option is best for you.