Are you planning on building your own home in the future? Building your dream home from scratch is a rewarding experience but it can be stressful. You might be wondering where to start or how to build a house on a budget. It is manageable if you plan well and secure your financing early.
We’ll help you prepare for what you might face during the home building process. These budget and construction tips will help you plan for your new home construction project.
Find a House Plan
When tackling a major project like building a house, it’s imperative to have a solid plan in place. A plan keeps you focused and ensures you don’t forget anything or make any mistakes while building your new home.
Most new homes use stock house plans from catalogs. You can even find these ready-made plans online. Browse them to find a plan that suits your style or contact a building service to recommend one.
If you’re unhappy with certain elements in a stock plan, find a building service or home designer that can modify the plan.
Think About the Landscaping
If you’re building your home on a lot that doesn’t have any trees or landscaping, you can start this process from scratch. Plan where you’d like to plant trees, install a garden, or create a green space.
The right landscaping increases your home value and improves your curb appeal.
You also want to consider shade when planting trees. Shade trees are often planted on the western corner of the lot to block the afternoon sun. The right placement keeps your home and yard cooler in those warm summer months.
Cushion Your Budget
More often than not, the building process costs more than people expect. Add cushioning to your budget to account for any unexpected costs that pop up.
Consider your budget a rough estimate. One of the best tips for building a new home is to have a contingency fund for any unexpected fees.
Here are a few items to include in your budget:
- Land Price
- Site Cost
- Loan Settlement Fees
- Planning Fees
- Finishing Costs
- Build Cost
- Utility Hookups
It’s advisable to have 5-10 percent as your emergency fund for housing constructions. This should cover any unforeseen circumstances or extra costs.
If you’re not paying for your new home with cash, you need to secure your financing. Consider applying for a construction loan to help pay for your new home.
A construction loan(s) is a short-term loan that helps to finance construction or remodeling costs.
Securing a construction loan may take more time than applying for a conventional loan, so start the process well in advance.
Use These Budget and Construction Tips to Build Your New Home
Building a new home can be overwhelming, but the process doesn’t have to be stressful. Use these construction tips to help start the planning process before you begin building.
Once you have a solid plan in place, you can begin to assemble your building and design team.
Did you like this article? Be sure to read our other helpful blog posts for more great advice.