Building a new home, where to begin …
Building a new home can be a detailed and lengthy process. Below are 6 steps that will help you get started:
1. Ask yourself “what am I trying to accomplish?”
Are you a first time homebuyer? Will this be a forever home? Will this be an investment property (unless you paying cash for the build~ you will have a challenge finding a lender who will finance a construction loan for an investment property).
2. Where do you want to build?
As the saying goes “location, location, location.” Are you looking to move out of the city and into a more rural setting? Are you staying in the city? Where you build will have a lot to do with your budget (as well as with the builder you choose). Land may be less expensive in rural areas but you may have less builders to choose from.
3. What is your budget?
Many people are not sure what it costs to buy land and build a home. Before reaching out to builders and architects you need to speak to a lender who offers a construction to permanent mortgage product. The lender will be able to customize a budget that fits your needs. A construction loan is much more detailed than a traditional mortgage. Finding the right partner during this step can make or break your project.
4. Contact a Realtor that specializes in new construction and land acquisition.
Be sure to interview 3 to 5 Realtors. A realtor that understands new construction will be speaking the same language when it comes to your new build. The Realtor also may know reputable builders, architects, and designers.
5. Hire an architect/designer.
What type of home are you looking to build? Craftsman? Modern? Every architect has a different speciality.
6. Contact Builders.
From our experience you should be interviewing a minimum of 3 builders. Many builders have different requirements. For example: some builders require a deposit before work can begin. Some own land they could sell you. Take your time on this step. You and the builder will be in a relationship for 6 months to well over a year (depending on the size of the build). Ironing out these details is very important.
Close on the contraction loan and start building your new home!
There are few more detailed steps in this process. The key to a seamless build is putting together a dream team. At BuildButler we have put together a team of trusted professionals to help you along the way.