How to Prepare for the Construction of your Custom Home
Many of us dreamed as a child to someday own a big house that has a cinema room, a swimming pool and even a dance studio. The good news is that if you’re currently thinking about building your own house because you can afford it and because you also want to realize your childhood dream, then the best way to go is custom.
While buying a home is one of the greatest purchases you make in life, building a custom home that looks exactly the way you want to certainly elevates the experience. However, before you go ahead and start working on this project, it’s best that you spend some time in order to learn about what it takes to build your first custom home.
Organize Your Financing
You should know that if you want to build a custom home, the difference in price compared to buying a ready-made home is not going to be astronomical, but it’s certainly not negligible. That’s because a large part of your time is going to be spent sourcing the required materials on an individual basis and if you’ve done something similar in the past, then you probably know that you have to be patient about it.
Also, if you don’t buy the materials in bulk, the price will increase quite a bit, so make sure that you look for a supplier that has all the materials you need for building your home. It’s very important to understand that your decision concerning the land you’re going to purchase, but also the quality and design of the construction are going to directly influence the final price.
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If you want to finance a custom home, then you’ll need to get a construction loan and this is something that not all lenders are happy to offer. Also, if you don’t own a patch of land already, you’re going to need to buy one which furthermore increases the price of your custom home. Most of the times, you’re going to have 2 closings and each of them incurs settlement fees.
Excellent Credit Report
Most lenders consider building custom homes to be risky and that is why if you want to take out a loan, you’re going to need to have an excellent credit history and also be able to pay a down payment of a minimum twenty to twenty five percent to qualify for it.
On top of that, a lot of lenders require extra money reserves for borrowers who plan to build a custom home and that is to ensure that they do have enough money in place to cover for the glitches that can lengthen the construction period. Checking the appropriate insurance is also recommended, so don’t forget about it.
Interview Builders and Architects
If you have an idea of the way your home would like to look, then you should start looking for architects or builders in your area who’ve built similar properties. Most people though are going to focus on finding a builder first, since they know a lot of architects and can certainly recommend them an experienced and reliable one. Regardless of the route you want to take, make sure that you always interview potential partners, check references and visit examples of their work to assess the quality.
Start With Land and a Plan
Meet up with potential architects and builders at the site if you already own land and talk about potential plans and issues. In case you don’t have land yet, you can get some recommendations from the builders or they can also put you in touch with a realtor who can help you with this. However, keep in mind that it’s vital that your land plan and home design match. It would be quite disappointing to buy a patch of land and then realize that it cannot accommodate your property.
Consider the Neighborhood
A lot of people who plan on building a custom home think that they’re never going to sell it, but life is unpredictable and you may never know how you change 5 or maybe 10 years from now. Therefore, make sure to also consider the resale value when building a custom home.
Avoid Cost Overruns and Delays
When building a custom home, it’s recommended that you plan your home from the foundation to the roof and also any other item in-between. Everything has to be planned property in order to save money and avoid any kind of delays. You can plan accordingly by hiring an experienced team who can help you at every step of the way and ensure that the process of building your dream home is going to be smooth and fast.