Getting Ready
Before you start your project, run some numbers to determine whether you can afford a customized, home construction plan. The numbers include the costs of construction, tax benefits, funds for the down payment and slush account, and other related calculations.
Your second step in home construction is deciding what kind of house to build. This includes architectural style, size, number of rooms, floor layout, building lot location, etc.
Once you have an idea on what kind of home you want, your next step is to get the design and specs plans on paper so that you can bid the project out to a contractor and arrange financing.
The specification plan looks at every room and determines what type of materials and designs that will be needed for the construction.
Home construction lending can be a little different than typical mortgage financing.
- You will first need a home construction line of credit that will be used to pay subcontractors and suppliers who perform work and provide supplies.
- At the completion of the construction project, you will use a residential mortgage to pay off the construction line of credit.
