Are you anxious about how to finance a new home build? It seems like a huge hurdle but let’s show you how to overcome it one step at a time.
Congratulations – you’ve decided to design and build your home from the ground up! Most people dream of this their whole lives but YOU are ready to make it happen.
Today, we are sharing some tips to get you off on the right foot with financing your new home. If securing a loan will not be required, then you are off the hook for this step!
BUILD YOUR BUDGET, THEN YOUR HOME
Determine what you feel comfortable spending on the build process and how much you can invest. Discuss with your spouse, if applicable.
For a great reference on types of costs you will incur, have a look at this article on the costs to build a house.
FIND THE RIGHT LENDER TO FINANCE YOUR HOME
Find a lender that is a good fit for you and your financial needs.
Mortgage lenders live and breathe interest rates and loan contracts and will happily serve as your personal loan concierge throughout the entire process.
BUDGET FOR THE UNEXPECTED
Set your budget with at least 10% wiggle room. This allows for unexpected expenses that may pop up during construction.
GET APPROVED FOR YOUR HOME LOAN
This is the final step in achieving financing for your home build! Make sure your credit score is optimal and you provide as much detail as you can about your construction plans.
If you’re unsure about what type of loan you’ll need, here is a useful guide on construction loans.
At first, it may seem like a daunting process to acquire adequate financing for your home construction. The steps above are all part of a careful planning process so embrace each one as a way to gain confidence and reach your next goal.
And now that you know how to finance your home build, you are all set for the next step: Hiring a builder!