Preparing For Your Custom Home Before Building
Building a custom home starts long before the foundation has been poured. Finding a competent, honest builder and developing a solid plan will make the construction process more efficient and fun. Start with these five steps to avoid costly mistakes in the construction process. Ask questions as you transition from your dream home to a real one and be sure to share your progress with those who have been through the construction process.
Budget Your Budget
Budgeting should begin as soon as you decide to build your home. Create a realistic estimate of what you can spend and the cost of building a custom home. Budgeting is about balancing what you want with a realistic assessment on your ability to pay.
You will probably need both a construction and mortgage loan. You can find out what size loan you qualify for based on income and other financial obligations. Most banks and financial institutions will prequalify you to get a construction loan. This will give you an idea of how much you can spend. This early stage also involves determining the cost of different components, such as the land, the architect, designer, general contractor, construction materials, appliances, and interior features.
It is important to begin this process many months in advance of the construction. Before signing a contract with a contractor, it’s common to spend up to two years researching the issue.