Building a New Home

Financing Your New Home With A Construction Loan

Just like purchasing an existing home, the first step in building a new home is consulting a lender who can help you determine a realistic budget. Even if you’re paying cash and know how much you have to spend, there are factors that impact the overall budget of your new home, such as site preparation and the finishes you choose, that must be taken into consideration. 

It’s also important to choose the right lender, one with construction lending experience – and better yet, with local construction lending experience. 

New Home Building Agreements and Warranties

There are several scenarios in which you may purchase a new home, from purchasing a “package” of land and home from a building company which owns the land to hiring a builder to construct your home on land you own or will buy. Every scenario must be reflected in the building agreement, but beyond the legal requirements that all builders must follow, each has his or her own practices.

Choosing A Site For Your New Home

When you're considering building a home, you undoubtedly have an idea of the size and style of the home you want, but many factors influence what can and can’t be built on any given site. Most often, sites have features which dictate the home’s size, its location on the site, and in some cases, the materials that can be used. These factors can not only influence your budget but also what you can or cannot build. That’s why it’s best to secure a site before finalizing plans.

Some common questions that should be asked and answered before purchasing any site are: