Building a home requires careful preparation. In order to keep a home-building project from becoming a financial burden, it is important to calculate how much you can afford to borrow from the bank. Be sure to allow for a buffer to weather unexpected costs and don’t just take the amount the bank is willing to loan since it may be more than you can repay. Be sure you know before you buy a lot if it will require any special customizations and choose a house plan that will fit all your needs for years to come. Also, negotiating a building contract which specifies project details, including materials is very important.
- Budget your money, weighing what you desire from your new home with what you can afford.
- About 20 to 25 percent of your costs will go toward buying the land where your new home will be built.
- You can use either a stock plan or have a custom-build home that is tailored to your specific needs.
“To avoid costly mistakes during the construction process, start with these five important steps.”