Am I ready to build a house? 6 Questions to Ask Yourself

Dreaming of having a custom-built house perfectly suited to your family’s needs? Or a house built to your taste with everything totally brand new? 

Building your own home comes with both pros and cons. Here are six questions you should consider before diving in without a plan.

1. Can I decide on a house quickly?

The competition to buy an existing house is incredibly high, with many homes selling in just a few days. The pressure to make such an expensive and important decision, while racing against other buyers, can be overwhelming. If you are someone who takes a while to think things over, and you want to make sure you get exactly what you want from a home, building might be the better option for you.

2. What is the biggest advantage to building a home?

The biggest advantage to building a home is getting a custom-build that perfectly meets the needs of you and your family. Everything in the house will be brand new, and you won’t have to worry about any costly repair jobs or issues that can surprise you in a pre-existing home. Just make sure you find yourself a high-quality, professional contractor who can properly understand your needs and bring your vision to life. We recently wrote a blog on how to find a professional remodeler, and much of the same advice holds true when building a new construction.

3. What is my Budget and how is my Credit?

Your first step is to make sure you fully understand your budget. Meet with a mortgage lender and discuss your options, so you have a firm number whether building or buying. 

The loan process for new builds is a little more complicated than obtaining a mortgage for a pre-existing home. When building a home, typically you begin with a construction loan, and then refinance into a traditional mortgage after construction is complete. In order to do this, you will need good credit and little to no debt. Once you figure out your budget, it is also important to factor in some wiggle room in there for any unforeseen expenses.

4. Do I need this home ASAP?

A new build typically takes up to a year to complete. If you are in a rush to move into a new home, buying a pre-existing home may be the better option for you.

5. Am I ready to put down roots here?

Building a new home is costly and time-consuming. As such, it is not the best option for someone who expects to move around. If you aren’t ready to settle down just yet, then renting or buying an existing property probably makes more sense for you.

6. What are my future needs?

When building a home, it is important to plan for your future and not just your current needs. Do you plan on having children some day? Will your parents move in with you at a certain age? Factor that into your building plan to avoid a costly home addition or stressful move later down the road.

Conclusion:

Taking the big step to build your own home is an important decision that you shouldn’t rush into. Consider the six questions we have listed here, and be sure to do some additional research before you dive into an expensive construction project.

Guide to Building a New Home

With low inventory in real estate markets across the country, many people are considering new construction. Although the process can seem overwhelming from start to finish, working with the right people and knowing what to expect can make the entire process less daunting. 

Keep reading for what you need to know about the home building process before getting started. 

Secure Your Financing First

Most homebuyers use financing when purchasing a home, and the same goes for new construction. If you were previously searching for an existing home and are approved for a mortgage, that won’t carry over to new construction. 

Speak with your lender about obtaining a new construction loan. Like mortgage loans, new construction loans are easier to get if you have a strong credit history. This loan will enable you to pay your contractor as the work is being finished. Once the home is completed, the loan is converted to a mortgage. 

Who You Work with Matters

Once you know you have appropriate financing for new construction, look for a builder who meets your needs. Research and meet with prospective builders to learn more about their style, quality of work, and rates. 

Take the time to learn about the builder’s developments, warranties, reputation, and communication style. You will also want to learn how the builder handles permits and hiring for specific jobs. A builder who understands your vision and communicates throughout every step of the process will ease stress and give you confidence in completing your new home. 

Plan, Plan, Plan

After getting approved for a loan and selecting a contractor, the planning begins! With your builder, you can start to focus on planning your dream home. You’ll discuss the larger picture, including:

  • Style of the home
  • Number of bedrooms
  • Number of bathrooms
  • Floorplan
  • Storage needs
  • Outdoor space

As you review the type of home you want, your contractor will share a projected timeline and completion date. In addition to planning what your new home will look like, be sure to plan where you will live during construction, as well as a backup plan in case the completion date needs an extension.

Purchase Your Lot

Some new construction takes place in a new development, where the builder owns several lots.  In this case, during your planning phase you will select an available lot where your new home will be constructed. If you are not building in an established development, you will need to start looking for land for sale in your desired location. Once you have acquired land, your contractor will clear the lot before construction begins. 

You Get to Choose

The final stages of construction are often the most fun. As you oversee the building process, you’ll discuss what you want to see in the design’s finishing touches. This includes selecting: 

  • Cabinetry
  • Countertops
  • Paint color
  • Light fixtures
  • Appliances
  • Flooring
  • Custom options

Throughout the entire process, stay in communication with your builder to stay updated on the timeline, build, and budget. 

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