The decision to build a custom home is an easy one for many homeowners. It's a great way to get what you want in your new house. However, it's also a process that comes with a lot of responsibility. When you build your own home, you do have control over the process, but there are also lots of decisions you will need to make. Here are three tips to keep in mind if you are planning on going with a custom home over a move-in ready property.
Get Financing Early On
The first thing that you should do if you plan to go the custom route is to secure financing early on in the process. Financing for custom houses is not as easy to obtain as financing for an existing property. In most cases, you will need to get a construction loan if you want to build a custom house. This type of loan can be more challenging to qualify for, and you will need a higher down payment. For construction loans, many lenders require somewhere in the neighborhood of 20 to 25 percent down.
Have A Contingency Fund
While you may think that you know exactly what you want in a custom property, chances are high that you will want to make a few changes. Any changes you make can end up adding to the cost of construction, which is why you want to have a contingency fund. Having money set aside is also essential for other unexpected expenses. Working additional funds into your budget is a great way to stay prepared. Setting aside at least 10 percent of your budget is a good idea, though some even put aside up to 25 percent for the unexpected.
When it comes to custom homes, patience is a virtue. Building a home the right way will take time. However, at the end of the process, you will end up with a sturdy new home. Custome homes take, on average, just under nine months to construct.
If you are looking into building a custom home, there are a few things that you should know before starting the process. First, financing can be a challenge, so this is something to take care of early on in the process. Having money set aside for contingencies is also a good idea. Finally, it's important to stay patient. Custom homes take months to build.
To learn more, contact a custom home provider.Share