Building That Dream House Series:Part Two
April 13th, 2008
ASSEMBLE A TEAM;
1. Determine how much you have to spend:You have decided that you are going to build. Now what is the next step? Before you go any farther you should sit down with a financial counselor from a lending institution and get an idea of exactly how much money that you will have to complete the project from the purchase of the land to the final nail being pounded and the landscaping completed. Once you have that number you can begin.
The very first question you need to research is: how much is it costing a square foot to build a house. This will vary from modular to stick built but with a few quick phone calls to local contractors and modular home companies you can get a ball park figure. Next you should have some idea how large a house you would like to have. Once you have figured that out you can multiply the dollar per sq. foot figure you got, add another 20% and that will determine whether you can afford to buy land and build a house. It will also determine how much you should spend on land.
2. Find a mortgage lender: You can ask your realtor for a recommendation. Usually they are the best source of knowledge because they usually know who is lending for construction loans, who has the best rates and who they trust. Once they give you several names you should call and see whose personality fits your style. They will work hard to get you a loan at the best rate that they can find.