Building a home of your own is one of the most rewarding things you will ever do. It is also a highly complex process. This post offers insights and home-building tips that will help you throughout the process.
Budget Tips for Building Your Home
It’s easy, in the heat of the moment, to get carried away with all the touches you’d like to have in your home – even if they push you perilously close to going over budget. It’s important to resist this temptation and stick with your build budget or to come up with the funds on your own, to cover the additional costs.
In addition to having essential funds available to build your home, such as:
Construction costs.
Permit costs.
Property costs.
Taxes.
Down payment.
You also need to establish an account to draw from for unforeseen expenses that arise in almost every construction problem in the history of construction. Know that these costs exist and be prepared for them when they present themselves. When you apply for a loan for building your home, offering your budget along with your building plan and estimates from builders, will help lenders have a clearer picture of your objectives.
Obtaining a Mortgage
In addition to the costs of constructing your home, you must also be able to obtain a mortgage for the home once the build is complete. Some companies offer loans that combine the building loan and the mortgage loan they are often called “construction to permanent” loans. Other lenders require two individual loans to cover the costs of both.
Building a better relationship with your lender prior to the loan process can help you so that you’re not left with too many questions once you begin the process of building the home of your dreams.
Choosing a Builder
Aside from your lender, your builder is the single most important person or entity involved in the process of building your new home. You need to make sure you work with someone who is reputable, dependable, trusted, and someone you can work with. Building a home takes time and you don’t want to have to start over with a new builder in the middle of a project. It is much better to learn of potential problems or conflicts with the builder before your project begins than midway through it.
Location, Location, Location
Location is so much more than just the lot where you’ll build your home. It also involves critical issues such as:
Access to roads and alleys.
Access to water.
Sewer access – or septic, if required.
Access to power.
Access to high-speed Internet.
Phone service availability.
This is in addition to where on your lot your home will sit. Do you want it close to the road or set back on your property? Is privacy a huge concern or do you want the world to see your beautiful new home? Is the lot large enough to meet your needs or would you prefer more room to roam? Also, what about the traffic? Is there too much traffic going by your home at all hours of the day and night? Will the noise of that traffic disrupt your sleep?
The best home building tips are the ones that recommend you have all this information sorted out before you even attempt to seek financing to build your home. The more of your ducks that are lined up in a row, the better it will be for your lender and your peace of mind moving forward.
These Mid America Mortgage tips can help you get more from your efforts when building a home. Let Mid America Mortgage help you with all your home building needs from advice and guidance to financing and more.
