6 Crucial Steps to Take When Building Your New Home
Whether you plan on building an all-new structure or renovating an existing residence, planning and developing a new home is an exciting undertaking. Just like any new adventure, you will want to come up with an air-tight plan to create your dream home while keeping your finances in check. Make the right choices and avoid costly mistakes in the process by following these 6 vital steps:
Establish Your Goals: Before you make any calls or delve into any numbers, think about what you want to achieve. Ask yourself some important questions: Where do you want to live? What will your dream home look like? What lifestyle do you envision having? Answer these questions to establish your goals, which will act as a (metaphorical) foundation.
Create a Budget: Think about the cost of your future home and how much you can afford to turn it into a reality. Determine the approximate prices and factor in the cost of the land, local fees and taxes, construction, furniture, and more. We also suggest that you request pre-approval from your bank to see how much home you qualify for before you get too far in the process. Most importantly, stick to your budget once it’s established. It’s never worth being house rich and cash poor!
Choose Your Location: You’ve determined the area where you want to live. Now is the time to choose your plot of land or the perfect older construction. A local realtor should be able to help you get a rough estimate of land costs for your new home. Usually, about 20 to 25% of your budget will go toward the cost of the land, so plan accordingly. Make sure that the land has the ideal soil condition and proper drainage as well.
Get Your Team Together: Building your dream home requires a team effort from a few crucial players. Scout out talented experts with solid reputations; you’ll want to recruit a builder, excavator, surveyor, and an architect or home designer. If you’d rather take more of a backseat role, allow your builder to put together his or her own team of experts. Your home will likely be the biggest investment you make in your life, so make sure that your team is thoroughly vetted, reliable, and enthusiastic.
Select a Solid Plan: Homes are built long before any ground is broken. Create a strong plan that will meet your needs now and for several years in the future. Don’t rush it – good plans take time, so don’t feel pressured to decide anything on a whim!
Sign the Contract: The plans are made and your team is ready to go. All that’s left for you to do is negotiate a contract! This agreement should include a detailed description of the project and the specs that will be included. Make sure that everything is accurate before the contract is written, signed, and dated, and you are ready to build your new home!
While you go through these critical steps, be sure to contact your friends at Central Federal. Our construction loans can save you time and money, and we will guide you through every step in the process. Learn more by calling us at (573) 364-1024.