In today’s fast-paced real estate industry, many families are choosing to build a custom home. There are several options to consider when building your dream home.
#1 Select a Neighborhood – First, decide on a neighborhood. Take into account schools, shopping, work, and convenience next step would be to enlist the services of a Real Estate professional that can help you thru the process.
#2 Select a Lot – Next, find a piece of land that is suitable for the size and type of home you want. Are there plenty of trees, or do you want a lot that has very little trees? Is the lot flat, or are you going to deal with added building expenses and design costs? Before you buy, have your builder meet you at the lot for a site evaluation; include a soil test to see if you will incur additional cost for engineering your foundation.
#3 Select a Builder – Choose a builder with a good reputation who can provide references. A good builder will also take the time to discuss the design of your home with you. With so many things to consider, you really should look at this endeavor as a marriage; this is likely the biggest investment that you will make, so you want great communication with your builder.
#4 Select a Floor Plan – You may have several meetings with your builder, designer, and architect to get the final plans approved. Compile your wish list—price, square footage, bedrooms, baths, your overall design, and the type of fit and finishes you want on the interior and exterior of the home. Then it is time to work on the design that you want. Don’t be in a hurry; it is better is evaluate your needs and get what you want up front, rather than risk added expenses and overages once construction has started.
#5 Select a Lender – Finally, choose a local lender for a construction-to-permanent loan package. When the loan package is in place, the lender will need completed plans and specs to do an appraisal on the contract you and the builder have agreed on. The loan process will probably take 30 to 45 days—during that time you will meet with your builder to make further selections; once the loan is approved and you close, the builder can submit your plans to the local permitting department.
Most custom homes can take from five to eight months to complete. Keep in mind that communication is the key factor to consider when building a custom home—and when in doubt, ask!
Mike Ferrie
PrimeSouth Fezler, Russell and Ferrie
