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Building A House - Where To Start?
Posted on 7/16/13 at 1:38 pm
Posted on 7/16/13 at 1:38 pm
This will be a loaded OP but I've never really considered building until now. Just thinking it will be the best option to get the features we want in a home.
First, do you consider building or buying cheaper? Not buying a house knowing you're going to dump a bunch of money in to fix up but a comparable home.
Second, where do you start? Can I bring pictures to an architect and let them draw it up, etc?
Third, finances. How exactly do new construction loans differ from a mortgage on a house already built? Do you still go to a mortgage company, same rates, PMI, etc? If you qualify, do they hand you a check for the amount? Do you still need 20%?
First, do you consider building or buying cheaper? Not buying a house knowing you're going to dump a bunch of money in to fix up but a comparable home.
Second, where do you start? Can I bring pictures to an architect and let them draw it up, etc?
Third, finances. How exactly do new construction loans differ from a mortgage on a house already built? Do you still go to a mortgage company, same rates, PMI, etc? If you qualify, do they hand you a check for the amount? Do you still need 20%?
7
Posted on 7/16/13 at 1:41 pm to CQQ
We plan on building about 7-10 years down the road. Right now, my only concern is buying land. They don't make any more of that, so the sooner I can buy the better.
I'm assuming you already have the land since you didn't mention it in your post?
I'm assuming you already have the land since you didn't mention it in your post?
Posted on 7/16/13 at 1:42 pm to ell_13
No, we don't. We would probably be looking at 2-3 years down the road and doing the land at the time of construction, if possible.
Posted on 7/16/13 at 1:45 pm to CQQ
Add 10% to everything just to be sure.
Posted on 7/16/13 at 1:51 pm to CQQ
Building for us was just a little cheaper but got exactly what we wanted.
1. Go to lots of houses and look to determine what you like and don't like.
2. Look at tons of plans to see what you like. Develop your own sketch. Take this to an architect to draw exactly like you want them. They will have some good ideas too. Make sure you get him to go over EVERYTHING. They are going to build the house exactly like the plan says.
3. Find a lot.
4. Find a good contractor to build the house and go over EVERYTHING you want or might be questionable in the plans.
4. Find a bank that will do construction loan. Will probably need at least 20% down.
5. Buy lot and start building.
That's pretty close to how we built our house and came out great.
Usually construction loans are for anywhere from 6 mos to a year. We would have had to refinanace the construction loan for over a year. Luckily took us 5 mos. and paid it off early.
The bank will set you up on draws with certain things needing to be complete in order for you to get the next draw.
1. Go to lots of houses and look to determine what you like and don't like.
2. Look at tons of plans to see what you like. Develop your own sketch. Take this to an architect to draw exactly like you want them. They will have some good ideas too. Make sure you get him to go over EVERYTHING. They are going to build the house exactly like the plan says.
3. Find a lot.
4. Find a good contractor to build the house and go over EVERYTHING you want or might be questionable in the plans.
4. Find a bank that will do construction loan. Will probably need at least 20% down.
5. Buy lot and start building.
That's pretty close to how we built our house and came out great.
Usually construction loans are for anywhere from 6 mos to a year. We would have had to refinanace the construction loan for over a year. Luckily took us 5 mos. and paid it off early.
The bank will set you up on draws with certain things needing to be complete in order for you to get the next draw.
Posted on 7/16/13 at 1:52 pm to CQQ
quote:
Building A House - Where To Start?
At the top and work down.
Posted on 7/16/13 at 1:55 pm to chuckitdeep
quote:
Find a bank that will do construction loan. Will probably need at least 20% down.
This is a requirement? 20% of lot+new home in order to begin? How can you be sure the exact # it will take to complete?
Posted on 7/16/13 at 2:00 pm to CQQ
Architects will work with you. That's what you pay them for. Go online and find house plans, floor plans, pictures of styles/features/etc you want and they'll go from there.
You can build cheaper or way more expensive. I have a few acres, but decided to buy first because it was cheaper (to me). When I build it'll be my last house I ever live in (family land), so it'll cost a little more than I was ready to spend. Comparing apples/apples, building can be accomplished cheaper.
Go to a bank/mortgage company and they'll lay it all out for you. You start with a construction loan while its being built and then a mortgage after construction. I know regs have changed (and are ever-changing), but if you build it and it appraises at over 20% of your loan you may be able to get out of pmi.
You can build cheaper or way more expensive. I have a few acres, but decided to buy first because it was cheaper (to me). When I build it'll be my last house I ever live in (family land), so it'll cost a little more than I was ready to spend. Comparing apples/apples, building can be accomplished cheaper.
Go to a bank/mortgage company and they'll lay it all out for you. You start with a construction loan while its being built and then a mortgage after construction. I know regs have changed (and are ever-changing), but if you build it and it appraises at over 20% of your loan you may be able to get out of pmi.
Posted on 7/16/13 at 2:18 pm to chuckitdeep
quote:
Take this to a recommended draftsman to draw exactly like you want them.
FIFY...
Posted on 7/16/13 at 2:23 pm to Slickback
We built last year. We purchased our lot 4 years ago. No way could we have afforded the house and lot at the same time. We spent 8 months on plans. We went with a certified home designer and saved a buttload of money vs an architect. Unless you are building something over the top, an experienced home designer has probably already built something close to what you are thinking. When you buy your lot, make sure to have them put a no work addidavit on property. It will save you some money when it comes time to get a construction loan. We basically got approved for what we thought everything was going to cost when we did the lot loan, that way we didn't have to do the whole process again when it came time for construction. We ended up 4% over budget and I was thrilled with that. If you spend the time on the plans, you won't have too much that needs to be changed during the process. Our builder told us that really starts getting expensive when you start back building, meaning that they build something and then have to change it cause you change your mind.
Posted on 7/16/13 at 3:13 pm to CQQ
I think buying instead of building would be cheaper unless you want an ultra luxury home.
With that said, we built our home 13 years ago that we live in today.
I went to Lowes and bought a couple of home plan books, found the one we liked most and took it to a designer and he did up the plans for us.
We ended up spending about 12% more than we had planned with our builder, mainly our fault. He gave us a budget for fixtures/cabinets and such, and what we ended up wanting cost more every time. Be aware that if your builder gives you a budget to go pick out your fixtures and stuff, you will likely spend more than that once you are at a showroom looking at what you will live with for years to come.
I would like to buy a piece of land and build again. Make sure you get items you want in it for sure and do some research on what things people have put into their homes that you haven't thought of. I know there are threads periodically on the OT for that.
For instance, a couple of things I like. I had the plumber put in hot and cold faucets in my garage near the garage door. I bathe my dogs outside and have hot/warm water available to me, also for washing cars sometimes it comes in handy.
Another is that my home is a ranch on a basement. I ran a 2 1/2" PVC from the basement to the attic. If I have to run a new electrical line or cable I can get from the basement to the attic easily. Things like that.
With that said, we built our home 13 years ago that we live in today.
I went to Lowes and bought a couple of home plan books, found the one we liked most and took it to a designer and he did up the plans for us.
We ended up spending about 12% more than we had planned with our builder, mainly our fault. He gave us a budget for fixtures/cabinets and such, and what we ended up wanting cost more every time. Be aware that if your builder gives you a budget to go pick out your fixtures and stuff, you will likely spend more than that once you are at a showroom looking at what you will live with for years to come.
I would like to buy a piece of land and build again. Make sure you get items you want in it for sure and do some research on what things people have put into their homes that you haven't thought of. I know there are threads periodically on the OT for that.
For instance, a couple of things I like. I had the plumber put in hot and cold faucets in my garage near the garage door. I bathe my dogs outside and have hot/warm water available to me, also for washing cars sometimes it comes in handy.
Another is that my home is a ranch on a basement. I ran a 2 1/2" PVC from the basement to the attic. If I have to run a new electrical line or cable I can get from the basement to the attic easily. Things like that.
Posted on 7/16/13 at 3:17 pm to kywildcatfanone
quote:
you will likely spend more than that once you are at a showroom looking at what you will live with for years to come.
See, we went to showrooms, wrote everything down and then ordered everything online. Saved probably 8% on all of our fixtures
Posted on 7/16/13 at 3:23 pm to Broke
We also ordered everything online and saved about 7-8%.
Posted on 7/16/13 at 3:29 pm to guttata
I think my main concern is financing. Is that true that you should have 20% of land+home to get started? And how do you know exactly what and how much to ask for? Or do they say, "Ok, we approve you for $300,000. You draw it as needed." Then whatever you don't use, it doesn't go on the mortgage and if you go over, you pay out of pocket?
Posted on 7/16/13 at 3:33 pm to CQQ
quote:
s that true that you should have 20% of land+home to get started?
If you already own land, that can be counted as equity towards the 20%.
quote:
And how do you know exactly what and how much to ask for?
Your builder will tell you how much you need based off of the specs. Get an available 20% more. You may not use it but it will be there. You'll do draws as the contractor needs money. At the end you'll have a dollar amount that you spent. You turn that into your perm mortgage.
Voila
Posted on 7/16/13 at 3:33 pm to CQQ
Get a mental vision of what you want. My house was created in my mind when I was 11 years old. I spent a weekend at an older cousin's house on Bay St. Louis on the Gulf. I kept the vision of that beach camp in my mind for decades.
When I was 50 I had the money to replicate the house on a lake up here in Bossier. The drafting/designing is much faster today with computer programs.
When I was 50 I had the money to replicate the house on a lake up here in Bossier. The drafting/designing is much faster today with computer programs.
Posted on 7/16/13 at 3:37 pm to Zach
quote:
When I was 50
Holy shite I had no idea you were this old.
Posted on 7/16/13 at 3:48 pm to CQQ
first i work for a bank and do construciton loans often, if you can by the lot first and pay it off and use that as your down payment for your house, if you buy both at the same time you will need 20% of the lot and house. We dont hand you a check we work with your buildder and he gets draws. also my bank(whitney) does 1 time closes also(this makes your life easier). contact a bank that does these types of loans sit down with someone and let them help you
Posted on 7/16/13 at 3:58 pm to Broke
quote:
Holy shite I had no idea you were this old.
Hell, when I was 50 I was still playing in the Shreveport Bossier Senior Baseball League. Those were the days.
soft ball is for girls
Posted on 7/16/13 at 4:26 pm to CQQ
Building is typically more expensive.
Start by looking at thousands of house, all styles, and find out what your wants/needs are.
Construction to perm is loan type you'll do once building unless builder will do turnkey. If you do construction to perm I was told to not leave money in construction account before going to permanent financing, can't remember why right this sec, hawk or GFUNK probably know
Good luck
Start by looking at thousands of house, all styles, and find out what your wants/needs are.
Construction to perm is loan type you'll do once building unless builder will do turnkey. If you do construction to perm I was told to not leave money in construction account before going to permanent financing, can't remember why right this sec, hawk or GFUNK probably know
Good luck
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