Building a Home? Here's What You Need to Know
As much as it is exciting to be building your dream home, there are a few things you need to know to make sure the building process goes smoothly. Let’s dive into 5 things you need to know before you start building…
Set A Budget with some wiggle room
While it can be pretty straightforward to determine what your budget is, it’s a bit more difficult to stick to it. That’s why when you come up with your budget, you should leave some wiggle room for any surprise costs… Which usually arise during building a home.
Get your financing in order
Building a home requires you to get some financing from a bank. However, this process is a bit different from when you get a traditional mortgage at your bank. Since you’ll be building, banks won’t be providing you with a lump-sum payment, like is the case when you buy a home with a mortgage. Chances are that you will need both a construction loan and a mortgage.
However, for both of these loans, most banks, and other financial institutions will be able to pre-qualify you for the amount of money you can spend.
Choose the right building team
Picking a builder is the most crucial part of this important project of yours. You will be working with the builder and their team for months, if not over a year. So make sure you pick one that will make the process as least stressful as possible.
A few things you can look at when picking a builder include credentials, experience, personality and communication style, their building style, and their price.
Be ready for your plan to go sideways
No matter you much planning you do and how good your builder is, there’s a 99% chance that a component of your plan goes sideways. Expect your budget and timeline to be stretched a little bit.
Get an independent inspector
Lastly, while you may have carefully selected your builder, you still want to make sure everything meets your standards and your requirements. Hiring an independent inspector to verify certain things at certain stages, such as your foundation, footings, and the frame.
Remember, building your dream home may be a super stressful time in your life, but it will be worth it once construction is completed.