How to Have Your Dream Home Built
Building a home is a dream come true for many people. It is also stressful, expensive and time consuming. When it is finished, you will undoubtedly feel a sense of accomplishment, but getting to that point may seem impossible. Breaking down the job into simple, manageable steps can make building your dream home a reality. Take your time with each step, and don't feel pressured to move on with the project until you are comfortable, because having a home built is the most expensive project most people will ever become involved in. Does this Spark an idea?
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Instructions
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Plan your budget. Your dream house will not be a dream for long if you run out of money before it is completed or the monthly mortgage payments cause stress. There are various calculators for determining how much of a monthly mortgage payment you can afford, but generally banks want no more than 28 percent of your income dedicated to your mortgage payment, real estate taxes and homeowner's insurance. Be sure to budget for landscaping, driveway, septic and water systems and utility connections.
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Choose a location. If you already own property, you can skip this step, but if you are shopping, consider the neighborhood, proximity to work and schools, and whether homes in the area are part of a homeowner's association. Some people avoid homeowner's associations, while others appreciate them; either way it is important to understand any building or maintenance restrictions you may encounter.
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Find the right home plan. Sometimes the building site determines the best home plan. Lots that are narrow, hilly or have other issues require a specific type of plan. After taking those things into consideration, choose a plan that offers attributes important to you, such as a master bedroom on the first floor, an open kitchen plan, or room to move an elderly parent in in the future.
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Pick your builder. Choosing a builder is a key part of the home building process. It is important that you choose someone who is competent and will stick with the proposed budget and communicate with you every step of the way. Find potential builders by talking to others who have recently built homes as well as the lender you plan to use. Once you have the name of three to five builders, ask each to submit bids and references. Make your decision based on cost as well as how you feel after talking to the contractor and references.
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Get a written contract. Before breaking ground, it is important to have a contract that spells out exactly what is and is not included in the price of the home. The contract should also state a timeline for completion as well as detail exactly how and when the contractor will receive various draws, or payments, from the bank. Take your time and read the contract thoroughly before signing.
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