Building A Home
Building a home can be one of the most exciting and eagerly anticipated projects your family will ever venture upon. It can also become one of the most harrowing, frustrating, and stressful, putting more strain upon your finances and family relationships than you ever thought possible, if things begin to go wrong.
Most families who undertake building their own homes will encounter some unexpected events along the way, however, good planning is the key to making sure that such events are not too costly or problematic, and the process stays on track and runs as smoothly and remains as enjoyable as possible.
Before you begin sketching out your ideas and dreaming of the possibilities, carefully consider why you want to build a home rather than buy an existing home. Take the time to tour several homes in your expected expense range and see what possibilities may be available. Make a list of questions and concerns you may have and discuss them with someone from your lending company and the builder you are considering. Seek the advice and input of trusted friends or relatives who have built their own homes, but remember that every experience is different so the more insights you get the deeper your understanding will be.
If you decide at this point that building a home is the best choice
for you, then prepare yourself and look forward to an exciting and
fulfilling experience, and the pleasure found in the process of
creating your dream home.
- Size of the land
- Property taxes
- Sewer and water lines available or not
- How strong the soil for the house
- Your budget
- Number of bedrooms
- Kitchen
- Garage
Financing Your New Construction
The type of mortgage or mortgages you can choose to finance your new construction depends on how you are planning to build. For example, if you contract a developer to build your house, and it includes the lot, you can finance the deal with one long-term mortgage loan. But if you buy a lot and hire either a general contractor or several subcontractors to build the house, you need two mortgage loans.
- A building or construction loan, which is a short-term or interim loan
to finance construction until the house is built and approved for occupancy.
- A long-term loan to refinance the building loan.
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