3 Key Things You Need to Know Before Building a Home
Let's be honest: house shopping is brutal. No matter how many houses you see, there's always one problem or another.
It's no wonder why so many people opt for building a home instead. Nothing offers you more freedom to choose the perfect combination of location, layout, size, and more.
It does come with a downside though: a more complex process than buying an existing home. How do you make it as smooth and efficient of an adventure as possible?
Things to Know Before Building a Home
There is a lot of energy and time that goes into building a house. Before you get started, read up on these vital facts.
1. Your Financing Options Are Different
When you get a traditional mortgage, the home you're buying serves as collateral for the loan. If you're building a home, that collateral doesn't exist yet.
As a result, you need to get a different type of home loan. There are several loans designed for building and renovating houses.
Financing can vary based on where you are. This home loan guide is perfect for Australian home builders, while Americans should consult a real estate agent for help.
Lenders are knowledgeable about your options too, but they have a vested interest in you choosing the most expensive loan. You can ask for their advice but take it with a grain of salt and get a neutral second opinion.
2. You Need to Break Down Your Budget
Budgeting for building a home is more complex than setting a budget for buying an existing house. You could have a dozen or more different bills and expenses throughout the process.
Start with an overall budget and break it down item by item. Have a budget for the contractor, one for the electrical work, one for the plumbing, and so on.
If you don't do this, it's easy to overspend because you may think you have fewer remaining expenses than you do.
3. Finding the Right Contractor Is Everything
Most people who build homes have one contractor who oversees the project. This professional is the single most important decision you'll make along the way. No pressure.
That contractor is responsible for making sure everyone else you hire is doing their job. A contractor who is too busy to keep watch or one who doesn't have the knowledge they need can lead to big problems and even bigger price tags.
Find out the licensure requirements and insurance minimums in your state for contractors. Instead of taking the contractor's word for it, verify for yourself that their license and insurance are valid and current.
Building Your Dream Home
Any time you move into a new home it's a thrilling adventure. When you're moving into a home that you had a hand in designing and building, multiply that thrill by ten.
Before you can get to that point, you need to get through the process fo building a home. The facts above can help you ensure that it goes as smoothly as possible.
For more facts and tips every homeowner needs, check out the other articles on our home improvement blog.