Although it may seem like a costly endeavor, oftentimes the building of a custom home will not be any more expensive than buying an existing property. Yet, when going the route of building, yo
u can essentially end up with a home that is fit to your specific needs and wants.
Before moving forward with the home building process, though, being prepared financially ahead of time can help with making the entire situation run more smoothly. For example, building from scratch can require that you not just purchase the home itself, but also the land that it will sit on. With that in mind, it is important that you either own the land already, or be ready to purchase the lot, too.
If you are getting a loan for the lot, you may need to have two closings – one for the land, and one for the home. In this case, you may also have settlement costs for both transactions. Being aware of this up front can help you to avoid any surprises.
In addition, because building a custom home is often considered by lenders to be somewhat risky, the bank or lender that you go through for your mortgage may require that you have a certain amount to use for the down payment. In some instances, the lender may also require that you have additional funds in place for any situation that could extend the building period.
One of the best ways to be prepared ahead of time is to work with a custom home builder that will walk you through the entire process right from the start. That way, you will know what to expect.
For more information on how the custom home building process works – or, if you would simply like additional information on the types of custom homes that are available to be built in Orlando and the surrounding area – Contact Us.
