Starting. Takes. Forever.
Waiting to break ground is the most frustrating part. It involved three major hurdles: Getting the floor plans approved by the development’s architectural-review committee. Getting the final contract from the builder. Getting a construction loan from the bank. Be sure your working with a reputable company with a team to industry professionals.
Lots of expenses aren’t included in the price of the house.
The land, not including property taxes and property-owners association fees are purchased before construction can begin. Also, some preliminary steps are required by the builder and the county where you purchase are required, such as, topographical map and architectural review; the development’s road-maintenance fund for wear and tear; septic-system permit, and test for the septic system. These expenses can’t be included in a loan—because you don’t have a loan yet.
Construction Loans Short-Term Loan
If you haven’t already purchased the land a construction loan is specific designed to finance the cost to build a home, 12 months or less with a strict approval condition and required a detailed schedule of your construction plans.
There are more cost-effective ways to design a house.
Ask questions about cost-savings upfront instead of just pursuing your dream design. Ask how much you we save if we choose a floor plan with a smaller footprint, but the same square footage? The cost of site prep, cement and roofing could be far less.
The same is true for the materials. Instead of stonework, should you go with stucco? Instead of a long, curved driveway leading to the garage, would the topography have allowed for a shorter driveway?
In the end, you may have spent about $100,000 more than you wanted, and while it may be your “forever home,” do your best to be well informed.