The question pondered by many as they consider building their dream custom home is “should we build our fantasy home or just buy an existing home with as much of what we are looking for as we can find?”
Before you get nervous about the cost of building your dream custom home, consider this. With proper planning and a good builder, it isn’t necessarily more expensive to build your dream home than to buy an existing home.
So rather than give up on fulfilling that fantasy custom home project before you even get started, here’s what you need to know about the building process to ensure that you don’t overspend on your dream home.
Secure Your Dream Custom Home Financing
Financing a custom home requires a construction loan, something not all lenders offer.
If you don’t already own land, you will have to finance the land purchase and then the construction. You typically need excellent credit and a down payment of at least 20% to 25% to qualify for a construction loan. In addition, some lenders require more cash reserves for borrowers who are building a custom home to ensure that they have funds in place for any glitches that extend the construction period.
Once your house is complete, there is one final step and this will likely vary based on the details of your construction loan. You’ll need to convert your construction loan to a mortgage.
You can learn more about the key factors in custom home financing here.
Select an Experienced Custom Home Builder
Unless you have a lot of free time, ambition and a keen understanding of construction, building codes and ordinances you are definitely going to want to hire an experienced custom home builder. The custom home builder will be there to manage the most critical aspects of the process so you don’t have to.
When selecting your custom home builder, its a good idea to develop a list of questions to ask the builder. Be sure that your know their process, their experience and their custom home building qualities that separate them from other builders.
Determine the Neighborhood Where You Want to Live
It may seem obvious, but it’s important to determine the right neighborhood for building your dream custom home. Sure, you have neighborhoods that you love, but be sure to learn all that you can about the neighborhood’s you are considering.
For those looking in the Tampa Bay area, you can learn about more than 20 of the finest luxury home communities in the area here or visit our blog and read custom home guides that we have prepared including school, shopping and things to do information for communities like Old Northeast and Snell Isle, in St. Petersburg or Palma Ceia, and Beach Park in Tampa among others.
Begin with Land and a Plan
If you already own land, you should meet with potential builders and architects at the site so you can discuss potential issues and plans. If you don’t own land, check our Devonshire Custom Homes available lots or we can direct you to a realtor who can help.
Avoid Delays and Cost Overruns
Planning the home with your builder from foundation to the roof can help you save time and money when you are building a custom home. Selecting the right builder is important here, and working with your builder and designer will ensure that everything is on time and on budget.
Devonshire Custom Homes clients meet with designer Lisa Lamb early in the building process to determine actual house plans. Using a survey of the lot chosen by the client, the team determines how much of the lot will be used for the house itself. Then layout is discussed, room sizes, elevation style, and the spaces are defined.
Questions about Building Your Dream Custom Home We Didn’t Answer?
If you didn’t find the answer to a question you have about building your dream custom home, pleas use the handy button below for a free consultation to get all of your questions answered.
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