The Essentials of Home Construction Loans

custom homeHaving your dream home built is an exciting experience but your enthusiasm can be tempered easily with the unfamiliarity and intricacy of mortgage loans for a new home construction. Understand the fundamentals of home construction loans and be prepared when the time comes that you have to decide if you want to build your custom home.

2 Types Of Custom Home Construction Loans

Home construction loans are available in two types:

Construction-To-Permanent – You borrow cash to cover the construction costs. Once you move in, the lender will change the loan balance into a permanent mortgage, making it two loans in one.

Stand-Alone-Construction – the first loan you will get is going to be for the construction costs. Once you move in, you will obtain a mortgage to pay for your construction debt. Unlike the first type, this is two different loans.

Construction-To-Permanent Loans

You will have lesser fees to pay because you just have a single closing with a construction-to-permanent loan. In the construction period, you will only focus on the outstanding balance. The interest rate is changing during the construction phase, which means it could move up or down based on the prime rate. In case the Federal Reserve decreases or increases short term interest rates while your house is being constructed, you can expect your interest rate to change.

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Can You Build A Small Custom Home?

custom homeBuilding a custom home is not exclusive to wealthy buyers who are looking to have an expansive house. As a matter of fact, today’s trends show that buyers these days mostly want a smaller home footprint.

According to a National Association of Home Builders survey last 2018, about 42% of buyers will sacrifice square footage to have a home that’s affordable. In 2018, the size of an average new home for a single family is below 2,500 square feet, which continues a five year trend where homes are becoming smaller. Unlike others who think bigger is better, a lot of today’s home buyers prefer a home that’s affordable, comfortable, and energy efficient.

Are you considering a small custom home? Here are a few things you need to consider.

How much can you afford?

Get in touch with lenders to get an idea of just how much mortgage you are going to qualify for before you begin anything else. Know how much a banker will most likely loan you, and how much your monthly payments will be. This will help you keep you within your budget once the design process starts.

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Why Winter Is The Perfect Time To Build Your Custom Home?

custom homeWinter is the best time to start building your custom home. Listed below are a few reasons why you should think about starting your project now.

You can make sure that the design process is just right without needing to rush through it.

A nice weather isn’t essential to designing your dream custom home. However, you can expect that it will take time. If the duration of the nice weather is coming to a close in the summer or spring, you may be tempted to hastily decide about the design, to make sure things move along. But during winter, you can take your time and be sure that you make the right choices.

Choose a lot that looks great in summer and winter.

Custom home builders in many cases, see situations wherein the homeowners select a lot that is based on summer conditions. Then, the homeowners feel disappointed come winter. During season, you will get a chance to evaluate possible lots at their worst conditions. How does water run through or is it pooling? Are you going to get some sunlight with the low winter sun?

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The Best Time For Custom Home Building

custom homeWinter is just around the corner and once that is done, spring comes next. It is the season that brings warmer weather as well as new life. But for other people, spring is much more than that. It is also the best time to begin the construction of a new home. Basically, it is the ideal season for completing building constructions faster without having to deal with several delay so you can move in to your new home sooner. If you are planning to build a custom home, listed below are some of the reasons why spring is the best time to begin. 

Custom Home Building 

More Daylight

When the summer solstice hits in mid to the later part of June, we begin moving back to winter. What that implies for your home building project schedule is that nighttime slowly falls much sooner as the day gets much shorter. By beginning the project during spring, your team of custom home builders can make the most of their time thanks to more sunlight during the day. However, it’s not only more sunlight that can help you finish your new home on time.

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Questions You Need To Answer Before Deciding To Build A Home

custom homeThere comes a time when some people have gone through the tedious and nightmarish process of purchasing a house. That first house is commonly modest but the excitement they felt was memorable. As they go on with their life, they eventually decide to build a custom home. But before anything else, there are a few questions they need to ask themselves.

Can I Afford A Custom Home?

When you are looking at it on paper, it seems like building a custom home isn’t that expensive. Although the numbers you see on paper show an attractive price, you have to take into account the unexpected construction costs of building a home. For example, although lumber may be cheap today, if the build has been delayed, that framing cost could easily go up. And although your land might seem to be all set to build on today, you may discover later on that it still needs to be surveyed. Be sure that you can afford whatever number is on the price breakdown and have enough cash to spend on unplanned costs without blowing your budget. Check the numbers and make sure that you sign on for the price that you can afford.

Do I Have The Time and Patience?

Having a custom home built instead of just buying an existing house needs a longer amount of time. Given that, you have to make sure that you have got the time and the patience to address the variables that are involved in constructing a custom house. Even the simplest, stock constructed house will need between three and six months to be completed. Meanwhile, custom homes could take at least 18 months. In case you are in a rush to get into a house, purchasing one could be the best option for you.

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Is It Possible To Build A House In Winter?

custom home builderIn the past, most homebuilders believed that if they can’t get the roof on before the first snowfall drops, then you have to wait for spring to come. That’s no longer applicable today. Winter home building is possible plus it offers several benefits for both the homeowner and the custom home builder.

The uncertain economy also had a significant effect on construction practices. During the boom years, custom home builders poured foundation during the fall season because the weather was nicer, and they were sure to sell the houses later. These days, the demand is much lower and cash is tighter, so they’re waiting for homebuyers to order what they really want. Contractors who used to take winters off are now very much happy to have jobs including those who specialize in renovations and additions.

Building a Home In Winter

Frigid Conditions

Most trades including custom home building could be done in all but the sloppiest and coldest weather conditions, however, they also have their limitations. Daylight hours are much shorter plus the crews don bulkier clothing so they move much more slowly. Extra measures should be taken to prevent ice damming, broken pipes, as well as other infiltration issues. Shingles stick better during warmer weather. Don’t worry too much about pouring asphalt.

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Reasons To Build A Custom Home

custom homeWhat is the most common reason to have a custom home built? First of all, you get everything you want. For some, that’s the only reason they need but for others, they need more than just that. In case you are looking a new house in the market but you’re finding it difficult to choose between a custom home or to personalize a semi custom home or production home, listed below are a few reasons why you should consider the first option.

Why Go For A Custom Home?

Future Proof Home

Future proofing means different things however, but this is mostly about family planning. Among the most common reasons why a lot of people have to uproot, put their homes in the market and purchase a new one is for them to accommodate a growing family. A custom house gives you that. You will have the chance to design your living space that will fit your needs today but also takes into account the many surprises that may come your way in the future.

Lower Energy Bills

Buying an existing house is ideal for some but retrofitting older houses with contemporary and up to date energy efficient fixtures could be expensive. Even if a new home buyer can expect to have energy efficient fixtures in their new houses, a custom build will provide them with greater opportunity to take into account energy efficiency and even lower their energy bills every month significantly.

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Part II: Timeline To Build A House

custom homeWhen it comes to building a custom home, you’ve most likely asked yourself how long will it take? The timeline depends on the various phases, however, things like materials, weather, as well as worker availability could also affect the process. But, if everything goes according to plan, the timeline should like this:

Designing Your Custom Home

Before the Build

Before doing anything, you have to look for a predesigned plan or perhaps an architect who can design your home. This is where you’ll find how far your money will go and what it takes to build your dream home.

At this point, you have to know the answers to certain questions like how big you want your home to be, where will the master bedroom face, or should all bedrooms be on the second floor. You need to have all these details in place at this phase so you will have higher chances of having a home that you like.

Building a custom home will take much longer than a predesigned home. One good way to make sure that you do not get too absorbed or overwhelmed by the design phase is to always keep your end goal in mind.

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7 Reasons To Build A New Home

home builderBuild a house! This is one of the most common advice given in the history of humans. Adults quickly recommend this option. As a matter of fact, it is the most common advice uttered by several mature people. However, several youngsters don’t think the same. Building a new house isn’t a priority for them. They would just like to hang out with friends and have fun all the time. They would like to purchase the latest gadgets to look cool. There’s nothing wrong with flowing with the times and enjoying the advantages that technology has to offer. But never forget to plan to build a home. And when the time comes be sure to hire the right home builder.

Why Build A Home?

A House Helps You Save Money

A lot of people find it difficult to save money. They just spend their cash as it comes. However, when you decide to finally have a home you can call your own with the help of a home builder, you will be able to save. A house is a large investment in terms of the capital needed to get started and to accomplish the project. But you will realize the savings you will enjoy down the road.

A Home Value Increases Over Time

Property values go up over time. If you have the money, build a home now. You will see the price of properties increase over time. Don’t wait for sudden increase in rent before you decide to make this decision.

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Everything To Know Before You Build A House Extension

Myrtle Beach home builderYou have to deal with two things first before you start building a house. The first one is getting all the building regulation approval and determine if planning permission is required. More than likely, you may require both. In some instances, you may manage to get away with only requiring the building regulation approval if your planned extension is within a specific limit. So before you go hiring a Myrtle Beach home builder, there are a few things you need to deal with first.

Approvals You or a Myrtle Beach Home Builder Needs To Obtain

The Area

If the area where you plan to build an extension will use up more than half of the original space of the garden, then you need to have a planning permission.

Boundary

Be ready to get planning permission when the height of your extension is over thirteen feet high and within two feet and size inches of the boundary regardless of the section of the boundary.

Conservation Area

The environment will always come first and preserving what cannot be replaced easily is important. Any building extension within an area of unmatched natural beauty needs permission.

Height

This is an important factor in any type of construction. Any addition to a home that is higher than the highest section of the roof the house will need to approval of planning authorities.

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