There are many reasons that a person chooses to build a new home. For instance, when you buy an existing home, you may not always get everything that you want as there are often several compromises you need to make when buying an existing home. However, when you build, you can get everything that you want and eliminate the things you do not.
If this sounds like the thing for you, our team at Construction Loans has outlined the following 3 essential steps to plan for when going through the construction loan process.
Hire a Qualified and Experienced Builder
The first thing you need to do is make sure you work with the best builder you can find. Your builder should have a great reputation for building beautiful homes. Furthermore, finding the right builder will set you up to find the best lender as your builder may have lenders that they work with often and can provide you with a referral.
Give Your Lender Detailed Information
Once you do find a builder and a lender to work with, be prepared to provide your lender with detailed specs for the home you are planning to build. In terms of lending, do not underestimate the importance of any one detail. Your lender may need all the specifications for the home down to the type of insulation used and the ceiling heights.
Hire an Appraiser to Determine the Home Value
The home does not have to be built to complete an appraisal. One of your first steps is to hire a qualified and experienced appraiser to determine what the home is worth. When you buy an existing home, the home purchase is going to be contingent on an appraisal. The appraisal is going to assess the value of other similar homes in the area to determine a fair market value for the home you are purchasing. Many people do not know that this same step is necessary when you are building a new construction home.