When it comes to purchasing a home, it can be very difficult to find the right home for you. If you are struggling to find a home that suits your needs in the location you desire, building a custom home may be the right option for you. Custom homes allow you to have control over the size of your home, how it looks, and even where it's placed. However, there are a few things to consider when building a custom home. Here are three tips for planning with your custom home builders.
Line Up Financing And Set A Budget
Before you even break ground on your custom home, it's important to set a strict budget and line up reliable financing. You don't want to go over budget and run out of funds in the middle of building your home. Getting financing for a custom built home is a little different than getting a traditional mortgage. Construction loans are often what is used and this type of loan is paid to the contractor during the construction of the home. Once the custom home is constructed the construction loan is then converted into a mortgage. With these types of loans, a down payment of 20 to 30 percent is usually required as well as a debt-to-income ration of 45 percent or less.
Choose A Home Builder Carefully
When it comes to custom home builders, it's important to find one who can build the home of your dreams. Custom homes are a major investment and cost on average between $100 and $400 per square foot. Finding a reputable home builder is a must. When looking at custom home builders it's important to take their local reputation into account. You will also want to make sure they are properly licensed and insured before they start work on your home.
Make Sure Your Timeline Has Some Flexibility
Building a home, especially a custom home, takes time. Custom homes take on average between 10 and 16 months to build. It's important to have separate living arrangements during these months. There are also plenty of issues that can lead to delays when building a custom home including inclement weather and getting certain types of building permits. Adding new features or switching up the floor plan can also add to the construction timeline. When it comes to building a custom home, your move-in date may shift a few times.
Custom homes are a great option for homeowners who are looking for a home that suits their needs. When building a custom home it's important to have a budget set and financing put into place. It's also important to choose the home builder carefully and to make sure that the timeline for the home construction is flexible.