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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