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Build Your Dream Home with These 4 Financial Tips

This year probably won’t be like any other year for you, if you’re preparing for the adventure of a lifetime – building your custom home.

Whether you just got married and you’re investing on something long-term or you simply want to make your dream home come true, you need to remember one thing: planning is everything. But of course making that plan happen is something else altogether.

Fret not! We’ve listed several practical tips that can help you save some cash for your project. So take a deep breath, grab a pen, and take down notes.

Tip #1: Starter Home – NOPE!
Invest on a home that will work for your family right now and over the years to come. The downside of building a starter home is that if you end up moving out in the near future, you just blew a lot of cash for nothing. If you want to improve or upgrade your home, expert builders and roofers in Maryland and other states can give you all the help you need.

Tip #2: Pay in Cash
Some homeowners who build their homes from scratch opt to pay in cash. The great thing about paying in cash, though, is that you get to save money on financing costs.

Tip #3: Partial/Initial/Down Payment
If you are not able to get the construction-to-permanent loan, you’ll have to take out separate loans for mortgage and construction. The normal down payment for these credit lines is 20% of your home’s total cost, but can vary depending on your income and credit score. Chances are, you might be able to bargain for a lower down payment.

Tip #4: Contingency Plan and Budget Cushion
Let’s face it: not everything happens exactly according to plan. Take your roofing for instance. What if your new house’s gutter wasn’t installed properly and you ended up needing gutter repair in Maryland after just a year? Add at least a 10% to 20% cushion to your budget; you’ll never know when you might need it. Sudden increase in prices of materials can also affect your budget. You can overcome any financial predicaments by carefully planning each step.

Hopefully these financial tips help you build your dream home. Need help planning, renovating, or expanding your dream home? Give us a call here at Blair Construction today.

This entry was posted on Monday, November 24th, 2014 at 9:16 pm. Both comments and pings are currently closed.

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