Dreaming of having a custom-built house perfectly suited to your family’s needs? Or a house built to your taste with everything totally brand new?
Building your own home comes with both pros and cons. Here are six questions you should consider before diving in without a plan.
1. Can I decide on a house quickly?
The competition to buy an existing house is incredibly high, with many homes selling in just a few days. The pressure to make such an expensive and important decision, while racing against other buyers, can be overwhelming. If you are someone who takes a while to think things over, and you want to make sure you get exactly what you want from a home, building might be the better option for you.
2. What is the biggest advantage to building a home?
The biggest advantage to building a home is getting a custom-build that perfectly meets the needs of you and your family. Everything in the house will be brand new, and you won’t have to worry about any costly repair jobs or issues that can surprise you in a pre-existing home. Just make sure you find yourself a high-quality, professional contractor who can properly understand your needs and bring your vision to life. We recently wrote a blog on how to find a professional remodeler, and much of the same advice holds true when building a new construction.
3. What is my Budget and how is my Credit?
Your first step is to make sure you fully understand your budget. Meet with a mortgage lender and discuss your options, so you have a firm number whether building or buying.
The loan process for new builds is a little more complicated than obtaining a mortgage for a pre-existing home. When building a home, typically you begin with a construction loan, and then refinance into a traditional mortgage after construction is complete. In order to do this, you will need good credit and little to no debt. Once you figure out your budget, it is also important to factor in some wiggle room in there for any unforeseen expenses.
4. Do I need this home ASAP?
A new build typically takes up to a year to complete. If you are in a rush to move into a new home, buying a pre-existing home may be the better option for you.
5. Am I ready to put down roots here?
Building a new home is costly and time-consuming. As such, it is not the best option for someone who expects to move around. If you aren’t ready to settle down just yet, then renting or buying an existing property probably makes more sense for you.
6. What are my future needs?
When building a home, it is important to plan for your future and not just your current needs. Do you plan on having children some day? Will your parents move in with you at a certain age? Factor that into your building plan to avoid a costly home addition or stressful move later down the road.
Taking the big step to build your own home is an important decision that you shouldn’t rush into. Consider the six questions we have listed here, and be sure to do some additional research before you dive into an expensive construction project.