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Home Building: Step-by-step Guide to Building a Home

Home building has taken off over the past five years. Many people that are looking for a new home have decided to build their home from ground up as opposed to buying a home. Obviously, building your own home is a great way to get exactly what you want in a home if you know what you are doing. However, home building goes along with a lot of details that you would never have to deal with if you were buying a home that was already built. Here is the step-by-step guide if you are planning in building your own home.

Find and Buy a Piece of Land

The first thing that you must do is find a piece of land that you can build your home on. Obviously, if you do not have the land, you will not have anywhere to build a home. This can often times be the most difficult part of the process.

Home Building Plan

The next step in home building is to design your home. Obviously, you can simply hire an architect to design what you have in mind. Alternatively, there are also many services that provide pre-designed homes that you can build. You just need to choose the home that you like and then order the blue prints.

Home building plans can be found online without having to leave the comfort of your own home. There is no reason to get caught up with an architect when you can simply go online to find many websites that offer home building plans. In another word, you will never have to hire an architect in order to draw up floor plans; you can simply find what you need with few mouse clicks.

When searching for home building plans, there are various search criteria that you can use to narrow down your options to find the one that best suits your needs as well as your budget. This includes square footage, home design, and price among others. This way, you can search through the home building plans quickly and efficiently.

Finally, you just need to order and pay for the complete blue print. With the complete floor plan, you can pass it to your contractor so that they can build the home to your exact specifications.

Home Building Cost

Next, you have to determine your home building cost. Knowing the home building cost will enable you to budget for what you need while also taking out the right amount of home construction loan. Here are few factors to help you estimate your home building costs.

The first thing to do when trying to estimate home building costs is to find similar houses in the area that has the overall look and size of one that you want to build. For example, if the home you are investigating is selling for $200,000 and the cost of the land is $20,000, in that case the home construction cost is approximately $180,000. Obviously, this will not give you an actual number but it is a basic rule to get an estimate of the home building costs.

Keep in mind that home building costs are also depending on interior features of the home as well. You will only be able to get a rough estimate by simply comparing the exterior size. For example, one home may have a completely finished basement whereas the other does not. Even though it may not seem like a big deal, but you could be dealing with thousands of dollars.

When figuring out home building costs, you may want to take cost overrun into consideration. While proper planning can usually take care of this problem, but you may want to put aside about 10% to ensure that you have the money to cover any overrun. Moreover, home building costs usually increase about 3 to 6% on yearly basis. This is due in part to the cost of labor and materials. Therefore, you should plan for this in advance as well.

Home building costs can often times be very hard to compute. By proper planning and doing your homework up front, you will be able to come up with an excellent estimate on your overall home building costs before getting started. This will save you a lot of headaches as your project progresses.

Hire a Home Construction Company

Home building is exactly what it sounds like; it involves having a new home built. You will need to hire a construction company to get started with the building phase. Hiring a company to undertake your home building project can be the most difficult task of the entire process. You need to shortlist many companies in order to find the one that will best suit your needs and your budget. Finding a home construction company can be done by searching the Internet or in the yellow pages. Either way, you will be able to find hundreds of companies that specialize in home building.

Make sure to ask as many questions as necessary when searching for a home building construction company. Look into the home building projects that the home building construction company has completed in the past will help you to decide if you like the quality of work they do. You want to learn as much as you can about the company that you are going to be doing business with in order to avoid problems in the future.

Get your New Home Construction Loan

When you are building your own home, you will have to get a home construction loan. Unless, you have a lot of money in the bank to pay for everything with cash, otherwise you will need a new home construction loan. New home construction loans allow anybody to get the money that they need in order to build a new home.

New home construction loans can be obtained from a number of different lending institutions. The key to being successful is to know exactly what you need and find a loan that meets your terms. Before you look into new home construction loans, you will first need to make an estimate on how much money you need to borrow from the bank. This can be done by giving a contractor the blue prints of your home to determine how much your home building will cost.

New home construction loans are very flexible and you have several options available as far as terms and rates are concerned. Finding out which rate you can get will help you to determine the length of your loan. In other words, if you can get a loan with a lower rate, you may be able to go with a lower term in order to save money.

New home building does not have to be as difficult as some people make it, and by planning at the process you will be living in the home of your dreams in no time at all.



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