It is possible for a buyer to find their dream home by browsing listings and attending open houses until the right property appears on the market. Many people take matters into their own hands by hiring builders to construct their homes from the ground up. Choosing this route has its advantages, such as the ability to customize your living space and have a say in every detail. However, there are also drawbacks. Here are some things you should know.
1. You'll need to buy land
It's not possible to build a new home just anywhere. You'll need to purchase a parcel of land that's zoned for the type of construction you wish to do. Your real estate agent may be able to help you find land to purchase, or you can search online by area or zip code. Generally, you'll need a permit before construction on your home can begin, so contact your local zoning authority to find out what it entails once you have your land. Usually, though, the builder you hire will handle the permits for you.
2. You'll need a home construction loan
A mortgage can be used to finance the purchase of an existing home. You will need a construction loan to not only purchase the land on which your home will sit, but also cover the building process. Either you can take out a construction loan that converts to a traditional mortgage once your house is built, or you can take out a construction loan that you must repay once your house is built. It is usually a more suitable and affordable option for the average buyer.
3. You'll need to find the right builder
Spending the money to build a house from scratch shouldn't be left to just anyone. If you want to turn your dream into a reality, you'll need a builder with a solid reputation and history of success -- ideally, one with a list of professional connections, including an architect, landscape architect, and other professionals. To get a sense of the quality of construction, you should not only ask each builder you talk to for references but also see some of their completed homes for yourself.