The Aspiring Home Buyers Profile from the National Association of Realtors (NAR) found that the American public is still somewhat confused about what is required to qualify
How To Build Your Custom Home Team
Agents and Lenders and Builders - Oh, my!
Building your dream home involves a lot of decisions and “moving parts” but don’t let that scare you away! Simply build the right team to support you along the way. Three people are essential – a real estate agent, a lender, and a builder.
First comes the real estate agent. It’s helpful if he/she has experience with custom home building because they already have connections established. Remember to be picky and find one that gives you peace of mind. If you start to work with an agent and then get a bad feeling, you can always find a new one. Also, the agent can contact owners of land to inquire if they are willing to sell even if it’s not on the market!
Next comes the lender. Many lenders do not deal in construction loans, so be sure to ask that question first. The land loan and construction loan will be separate until the custom home is complete. At that point, the loans are combined into a single loan. It is important to note that many banks will only finance 80-85% of the full amount of the construction loan, so the difference will come out-of-pocket before the home can even get started.
The third person on your team is a builder. Once you have a great real estate agent and you are pre-qualified for your custom home, it’s time to interview builders. Depending on the size and style of the home, the average custom home ranges from $135-190 per square foot (without the lot). Ask around to see who is popular in the area and visit examples of their work to ensure it matches your vision. To begin the home, most builders require a down payment that comes out of pocket. This can be anywhere from $3,000 to $20,000.
Also, don’t be shy about asking for changes or home elements that are unusual. You are the team leader and the home should be everything you want. It may seem daunting that the custom home process is so complex. In the end, it is worth every minute and every penny to see a client’s dream come to life! If you have questions, please let me know how I can help.
Linda Piercy, REALTOR® andHomes for Heroes Affiliate
Cell: 469-396-6337 Email: [email protected]
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