Ready to start building the home of your dreams but not sure where to begin?
Whether you’re looking for the perfect house to raise your growing family, a couple of dogs or a place to host gatherings with friends, GreenStone’s home construction loans can help make it happen. Our flexible country living financing includes both contracted construction projects and do-it-yourself home builds, allowing you to choose the process that best fits your busy lifestyle.
Before you get carried away planning your perfect kitchen and begin shopping for your dream backsplash, there are a few things you’ll want to consider first as you prepare for your build. Here are the top must-dos when preparing for a construction loan and home build:
Get a Pre-Qualification
Regardless of how early in the building process you may be, even if you don’t have a home site or a builder picked out, your first step is getting prequalified. Although it may seem premature to get pre-qualified months before you need the loan, a pre-qualification will help you and your loan officer do a check-up on your finances and determine your budget. That way, when you finally begin planning the construction process you will know exactly how much you can afford.
Another bonus to getting pre-qualified early is you’ll have time to take care of any surprise credit report items you weren’t aware of, so you can work on getting your credit in tip-top shape. It’s best to get pre-qualified 2-5 months before you plan on beginning the construction process.
For example, if you plan on building in the spring, you’ll want to meet with a local lender toward the end of the year to start discussing your financial plans and building goals.
Prepare Your Land
If you have not yet chosen your home site and need to begin the search for your ideal location, your next step is to get online or contact a realtor to start the process.
If you already own the land you plan to use for your future home site, take time to consider what needs to be done before the building can start. Preparing the land looks different for each project, but typically consists of testing the soil to make sure it is suitable for building on, clearing trees or getting improvements started. It is crucial to do this step 2-3 months before you plan to build so when it’s time to begin building, the land is ready to go.
Decision Time: Contracted or DIY
Once you’ve decided on a build site, it’s time to decide which build option works best for you: working with a professional contractor or building your house yourself.
If you plan to work with a contractor, start researching builders in your area. Getting references, talking with the builder’s previous customers, and asking to see homes the builder has previously built will give you a sense of their style and their price-point, and can help ensure the house plans they offer align with your home goals.
If you plan to take the DIY route, there is other homework to be done. You should start by researching the items you will need and gather the costs for each. It’s important to keep in mind the costs could change between the time you prepare for the build and at the actual time of purchase, so crosschecking the prices for each item again at the time of your build is crucial.
Do Your Research and Ask Questions
The more homework and research you do up-front to prepare yourself for the construction process, the smoother home building will be and the less likely you are to run into project setbacks. Whether you’re doing a contracted construction build or taking the opportunity to do a DIY build, understanding the construction process is key and your lender is a valuable resource!
GreenStone’s team of experienced experts are ready to finance your home construction. Find our home construction loan options here.
