Purchasing a custom home is always an exciting time! You’re excited about choosing the interior and exterior paint colors, the decor, the lighting fixtures, and even your front door. But, before all of the really fun stuff begins, you have to start by setting yourself up for success. How do you do that? By following our custom home buyer checklist!
The checklist below is designed to help you build your first custom home with as few hiccups as possible. By following this checklist, you’ll be setting yourself up for success as you navigate the waters of building a custom home.
Determine Your Custom Home Building Budget
Before you ever talk to a realtor, custom home builder, or even a mortgage broker, you need to sit down and assess your own budget. Being realistic, factor in all of the expenses associated with owning and building a custom home. You’ll have to consider the upgrades and features you want to include along with purchasing the land you want to build on. Beyond that, you also need to factor in the other monthly expenses your budget now has to cover. Once you’ve compiled a list of all the expenses, you can start to get a better sense of the kind of custom home building budget you’re working with.
Learn about Your Mortgage Options
With your budget in mind, you can begin talking to mortgage brokers. Keep in mind that you won’t just have a monthly mortgage payment, but you’ll have property taxes, home insurance, and in some cases private mortgage insurance (PMI). A good mortgage broker will be able to determine a rough estimate on monthly costs for you based on your income and credit report and history. It’s important to know that this is only an estimate and won’t necessarily reflect the interest rate you’ll secure when you apply for your mortgage loan.
Discuss Your Plans With A Custom Home Builder
After you have a good idea of what kind of mortgage you’ll be able to secure, it’s time to talk about your plans with a custom home builder. While this may be further down on the custom home buyer checklist than you’d like, it’s important not to jump the gun. Your custom home builder will be anxious to discuss all of the details you’re looking for in your dream home. During your first consultation meeting, your home builder will most likely ask about the style of home you like and ask you to bring any ideas and inspiration you have for your home to the meeting. Based on the information you discuss, your custom home builder will prepare an estimate for the project.
Secure Your Home Building Loan
Now that you have an estimate from the custom home builder, it’s time to go back to the mortgage broker. Based on your estimate, budget, and credit score, the broker will provide you with official mortgage terms including monthly payments and your interest rate. You should be cautious of your credit spending while you are working through the entire checklist because it can and will impact your final mortgage terms.
Break Ground On Your Custom Home
With your loan secure and your builder on board with your plan, it’s time to break ground! This is where everything you’ve been dreaming about really begins taking shape. As crews break ground, you can start planning paint colors and decor for all of the rooms inside your new home.
Now that you have a better understanding of the custom home building process, it’s time to learn a little more about custom home builders and how to hire the right one for your project. By downloading our free e-book, Tips For Building A Custom Home, you’ll learn about choosing the right building site, interviewing custom home builders, and tons of other great information.
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