Ready to consider building a Custom home?
There are some amazing benefits to building a custom home. You get to choose every aspect of your family’s new home. Designing the perfect floor plan and elevations, choosing the cabinets, counter tops and flooring, just to name a few. You can design a house that fits the way your family lives, whether you are a growing family or an empty nester, preparing for retirement or have a family member with special needs, your home can be designed around your lifestyle. A custom home provides a backdrop that is a true reflection of who you are.
Here are a few things you should know about the process to help you decide if it’s the right time to build.
If you own the property or have paid down the balance significantly, the equity in the property can be used towards the down payment on your permanent mortgage loan, which can be a huge benefit. There are some costs during the construction process that may be new to you. Most of these costs are not necessarily additional costs, they are just paid by the property owner and not figured into the builder’s price.
As the property owner here are some costs you should be aware of:
- Water meter/ wells, electric meters and monthly usage bills are applied for and paid for by the property owner.
- Fencing and/ or landscaping expenses.
- Interim interest charges incurred during your build as draws on the construction loan are requested by the builder
- Closing costs associated with your construction loan, which your lender can explain in detail.
- Builders require a percentage of the total amount of the build as a construction deposit- each one is different so check before you sign a contract.
The most important bit of advice I can give to a prospective client for a New Custom home is educate yourself, find out everything you can about the process and what will be required. Visit a lender early in the process so you understand what you qualify for and can move through the process knowing your proposed budget and what you are comfortable with. Get an idea of what you are looking for in size and design before you sit down with potential builders. They can only be as helpful as the information they receive from the client. Most of all building is a process and with the right builder it can be a very enjoyable and rewarding one!! 🙂