Most people dream about building a house – a place that they can call their own, that they designed from the foundation to the roof. However, home building is definitely not an easy process – there’s so much that goes into it, not only in regards to the construction but also the paperwork needed to even make that happen.
Doing it for the first time can definitely be overwhelming. That’s exactly why we are here – below, we gathered all the information we thought would be helpful when building your dream house. So, before you start deciding whether you prefer to have EPDM roofing or a roof covered in clay tiles and whether the walls should be white or pink – here is everything you need to know about the building process of your dream home:
You Need to Buy a Land
You can’t build a house wherever you want, just like that – you need to purchase a piece of land that is zoned for the type of construction work you are planning on doing. You might ask for help from a real estate agent, or you might want to learn about land lease agreements, through the area or zip code.
Remember that you most likely will need to get a permit before the construction starts, so as soon as you have secured the land, contact your local zoning authority in order to see what it entails. In most cases, however, the constructor you hire will take care of the permits on your behalf.
You Need a Construction Loan
If you were purchasing a house that is already standing, you would be able to finance it with a regular mortgage. When the home does not exist, you’ll need a construction loan that will cover not only the land purchase but also the building process.
You have two options – you can either choose a construction loan that will be converted into a regular mortgage once the house is fully built, or you can decide on one that needs to be paid off once your dream home is complete. The first one is probably a better choice for an average buyer.
You Need to Find the Right Constructor
When spending thousands of dollars on building a house, you probably want everything to go as smoothly as possible – which is why you need to spend some time deciding who would do the job best. You can’t just hire anyone.
Look for a builder with a great reputation and a history of success – preferably look for one that has connections, for example, with an architect, landscape architect, and any other profession that might be needed to turn your dream house into a reality.
When talking to potential constructors, ask for some references, as well as examples of their previous work, so that you can see the quality of their services.
You Need a Budget That You Are Comfortable With
Depending on what you want to include in your house, the expenses can quickly pile up. So, sit down with the constructor, and come up with the budget that works best for you. The budget will be included in the contract you and the builder sign.
Usually, when building a house, it is a common practice to include a clause in the contract that allows the builder to spend a certain percentage above the agreed-upon amount that makes it possible for them to finish the construction work. On average, the said percentage is 10%, however, you can decide on the one you’ll feel comfortable with.
You Need to Be Flexible
Building a house from scratch is definitely not a piece of cake, so expect some delays and hiccups along the way. Weather conditions can make the construction work fall behind schedule, and there’s also a possibility of delay in obtaining permits. Also, you can’t forget about inspections that will be needed at various stages of the construction process. For example, first, you’ll need a rough electrical inspection, and then, some time later, you’ll need a final electrical inspection.
Another thing you need to keep in mind are issues with procuring supplies – if there are some materials that you want to use in your house, but they are not currently available and will be one or two weeks later, it will set you back in time.
Be flexible, and make sure that you have a place to stay in case the construction work takes longer than it was expected.
The Bottom Line
Being a homeowner is a dream of many. While some people are happy with buying an already constructed house from someone, for others, it won’t do. They want to have something that they helped create and that would feel truly theirs, which is why they decide on building a house from scratch. This, as we already established, can be quite a challenge.
However, once the process of building your dream house is completed, you’ll realize that all the trouble was worth it. Now, the only thing left is decorating. Good luck.
