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
Part 1 The Shaffer Custom Journey
I recently asked one of my clients, The Shaffer Family, to be the subject of my blog series about custom home building. They agreed! We can follow them through the steps to get a complete picture of what happened during their adventure. The beginning can feel a bit like Dorothy in Oz because you gather a team to help progress through unknown territory. Here is how the Shaffers kept on their “yellow brick road” to a custom home.
The Shaffer Family began this journey in the summer of 2016 by hiring me to help them search for a home. They could not find what they wanted in an existing house, so they started to inquire about custom building. The first thing needed was pre-qualification for financing. We met with Scott Thomas at Freedom Mortgage in New Braunfels to ask questions and get the ball rolling.
Scott explained that there are three parts to custom home financing – the land loan, the construction loan, and the final conventional loan. One of the biggest factors to consider is that banks usually only finance 80-85% of custom home builds. The rest comes out-of-pocket at the beginning. The Shaffers hesitated to spend their entire savings, but moved forward knowing it’s a great investment.
With a pre-qualification letter, the next step was finding a builder. They interviewed and received quotes from three different builders – Carroll Construction, Summit Oaks Homes, and Champagne Custom Homes. While David Champagne was not the cheapest option, the Shaffers felt that his quality and customer service was right for their project.
Hire a real estate agent – CHECK!
Hire a lender – CHECK!
Hire a builder – CHECK!
Finding a lot and designing a floor plan are in the next part of the Shaffer's journey.
Linda Piercy, REALTOR® and Homes for Heroes Affiliate
Cell: 469-396-6337 Email: [email protected]
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