Many people shudder at the thought of building their own home because they think the process is too complicated. Read this short article and you will learn that it is not complicated at all.
1. Budget - Determine how much you can afford. Consider your debt-to-income ratio. This is a comparison of your gross (pre-tax) income to housing and non-housing expenses. Monthly mortgage payments should be no more than 31% of gross income. Your mortgage payment combined with non-housing expenses should total no more than 43% of your income.
2. Credit score - Check your credit score before you start the borrowing process. It is important that you clean up any negative information that affects your credit score as it will affect the interest rate that you will be able to negotiate for your mortgage.
3. Financing - Many home builders have arrangements for financing in place with incentives built in so you will take advantage of their financing.
If you decide to go elsewhere you need to decide whether you want to use a mortgage broker versus banker. Which is best? Your bank has high overhead with their expensive buildings, staff, and equipment. Who do you think they will pass those expenses to? Mortgage brokers usually have less overhead. You may even save money by checking the Internet.
4. Location - Where do you want to live? How long is your commute to work going to be? Are there parks nearby to walk your pets? How close is the nearest shopping? Does it meet your needs? Are there schools nearby for all of your children? Are there buses available to get them there?
5. Realtor - An experienced new homes specialist will help you avoid making any costly mistakes when going through the home building process. They can save you time by searching for neighborhoods and homes that meet your needs. An experienced realtor will also keep your interests at heart with the contract negotiations.
6. Pick your plans - Is this dream home practical? If you live alone do you really need a 4 bedroom/4 bath home? It will give you the extra room you've always wanted, but can you afford the higher utility bills and higher taxes? Figure out your costs for extra furniture and decorating. Will the home suit your present and future needs?
7. Pick your Lot - Is it big enough to accommodate the plans you picked? Will you be adding a pool? How much yard do you want to maintain? What direction do you want your backyard to face?
8. Contracts - You have finally narrowed down your choice for your new dream home. Now is the time to negotiate with the home builder and get a contract signed with them. Your new homes specialist can guide you through the process and make sure you understand everything thoroughly.
9. Furniture - Are you buying new or using the furniture you already have. Will it fit? You can use a home design software program to help you visualize your furniture in each room. There are design websites like Plan3D.com that are also a great tool.
10. Interior Design - Now comes the fun part. Your new home builder may have a design consultant on staff that will help you pick your colors. There are also numerous websites, magazines and books that you can reference.
Building your new home can be and exciting time. Keep yourself organized and use the resources offered to you and soon you will be moving into the new home of your dreams.
If you're considering building a new home, give Landon Homes a call today (904) 567-3430 and let's get started.
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