If you’ve been searching the real estate market for the perfect home and just haven’t found the one for you, building a house can be the best possible way to guarantee the house of your dreams. Building a house offers the ultimate flexibility, giving you the freedom to take your vision and bring it to life.
However, managing the construction process isn’t always easy. Building a house from the ground up takes a lot of coordination, financial resources, and professional assistance. Here is what you need to know about the home building process.
Unless you have a lot of cash on hand, you’re likely going to need some sort of third-party financing to afford the cost of construction on a new home. Luckily, lending is available to homeowners for construction in a similar way to securing a mortgage for an existing home.
It’s important to note that construction-related loans may be slightly harder to secure than a traditional mortgage. FHA first-time homebuyer loans are limited as well for new construction, so those without a strong credit history are advised to do research to ensure adequate financing is available.
For homeowners who are confident in the construction process and are able to hold to a set timeline, construction-to-permanent loans can be an excellent option. This kind of loan allows property owners to pay contractors and other construction professionals as the work is done. That cost is then converted to a mortgage when construction is finished. Construction-to-permanent loans allow for a set interest rate at closing and consistent fixed payments.
Before moving forward with buying land and starting construction, you need to know what kind of home you want to build. A small plot of land may not accommodate your mansion dreams, while lots in subdivisions may have restrictions related to size and style. When planning your home, consider points like:
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Be aware that compromise may be part of the process. It’s not unusual for plans to change as building gets underway for cost or logistical reasons.
Once you have financing secured and know what kind of final product you want, you’ll need to choose a place to build your home. Since you’re building a house you can buy land anywhere, maybe you have your sights somewhere outside of Atlanta, GA or Dallas, TX? The options are endless. Parcels of land designated for new construction may be available in numerous locations, including underdeveloped suburban areas, rural areas, and as a part of subdivision development.
In some cases, where you buy can determine things like sewer, water, and electricity. In subdivisions, these details are usually completed when land parcels are listed for sale, but in less developed areas, this may be the responsibility of the property owner. Note that more rural land not protected by the subdivision development process or city law may require title insurance.
Home construction is a highly regulated process. It’s not possible to just purchase property and start building. All construction projects need to adhere to local zoning laws and proceed under the proper permits.
Working with the right professionals can alleviate much of this burden. Contractors and construction companies will know what kind of permits are necessary to start the building process and ensure construction follows all regulations. The lead on your project can work with you to file papers and ensure you’re prepared to move forward in a safe, legal manner.
You may be handy with a hammer, but home construction really requires a professional team to guarantee a great final outcome. In order to bring your dreams to life, you will need to hire professionals for this process. This may include:
The specifics of hiring will vary from one property to another. For example, land sold as part of a subdivision development may not require grading, but rural land purchased outside city limits might.
Land excavators, contractors, architects, and construction companies come in all shapes and sizes, and some are better than others. Instead of hiring the first names you come across online or in the phone book, be sure to do your due diligence on both reputation and abilities.
In some cases, like some government lending programs, including the USDA, approval of a particular builder or contractor is required to secure financing. Under these circumstances, it’s extremely important to pick competent, qualified professionals that can exceed expectations.
When evaluating professionals to work on your home, be sure to keep the following points in mind:
Many professionals provide free or affordable quotes and estimates as well. Seek pricing options from all your top candidates to best guide the decision-making process. Be aware that estimates can move and change as building progresses, so choosing a team at the very top of your budget could lead to potential problems should issues arise.
Once you have secured financing, purchased land, arranged for all necessary permits according to local law, and hired the best possible professionals to help, the building process can get underway. This process can be quite fast using modern technology, but will still require numerous steps to complete.
Building a house can be a stressful process, but there’s no better way to ensure your new house meets your every expectation. With a thorough understanding of the home building process, you can approach the construction of your dream home with care and confidence.