Building a home is no small task. It takes time, planning, and persistence to build a house that will eventually become your new home. With home inventory still waning, many people are opting to build their new home, and go through the process of planning and designing the home of their dreams. However, before you take the leap and commit to the new build process, there are some things you should consider.
Do the Research About Your Dream Home Upfront
Diving into the world of a new construction can be a bit overwhelming. Not only do you get to decide what type of home you would like to live in, but you also decide the layout of the home, the materials that are used, and much more.
To help yourself stay grounded, take time at the beginning of the process to do in-depth research about the types of decisions you will need to make so you are well-prepared. Some questions to consider would be:
- What type of neighborhood do you want to live in?
- What area can you afford?
- What reputable contractors are in your area?
- What type of home are you looking to build?
- What are your must-haves in a new home?
While you may not know the exact answer to every question, having a good idea of what you want will ultimately make the decision-making process a little easier.
Budget Accordingly for Your New Construction
The expenses that come with building a new home tend to add up quicker than anticipated. In fact, recent reports show that the surging cost of lumber could add thousands of dollars to the cost of building a new single-family home, which can easily set back plans and timelines.
One of the best ways you can help ease the stress of unexpected expenses is to create a budget. Not only will this give you a realistic view of what you can afford, it can also help you prioritize your non-negotiables in the process.
Many folks will incorporate a contingency fund into their budget, which is typically between 10-20% of the overall budget and is strictly used for those surprise expenses. While you may not be able to account for everything that will pop-up, a contingency fund will ultimately help mitigate strain on your bank account and keep you on track as you navigate through the new build journey.
Find a Financial Partner who is Familiar with New Construction
One of the best steps you can take is to find a lender who is familiar and experienced in new construction loans. Because a construction loan is different than a traditional mortgage in that it is similar to a line of credit (you only borrow what you need when you need it), working with a lender who is familiar with the process can make the experience less stressful.
At Blackhawk, our Mortgage Planners will walk you through the New Construction loan process from start to finish. From finding the perfect piece of land, to ground-breaking, to moving-in, we will be there every step of the way. Not only will you work with a Mortgage Planner who is experienced in new construction loans, but you will have someone on your team who will offer insight and understanding into the new build process, ultimately setting you and your family up for success.
Blackhawk Bank Can Make Your New Construction Dreams a Reality
We know how stressful it can be managing timelines and expectations that come along with building a new home, and our Mortgage Planners are ready and willing to help make the process stress-free.
Ready to learn more? Contact us today!
Author:
SVP Mortgage Banking