Home Construction Loan – Why Building Your Dream Home is a Better Investment Than Buying

Picture your Dream Home. Does it have a hot tub? A screening room? A subterranean garage for your collection of vintage roadsters? Everyone knows what their dream home looks like. So why do so few people actually build it? The truth is that building the home of your dreams often costs less than buying a house on the market. All it takes is good plans, an experienced contractor, and the right financing. Today, that means a construction loan.

In the past, the federal prime rate was so high that it made construction loans very expensive. People didn’t want to pay large sums to borrow funds, so they would finance their home construction with a line of credit on an existing home or by spending their cash reserves. Problems often would occur if the funds ran out or if the project went over budget.

With lower rates now available, more and more people are turning to construction loans. Not only are they economical, they also provide built-in protection for your project to ensure it is completed on time and on budget.

Even with dropping home values, home construction nearly always costs less than purchasing a home on the market. This includes buying a lot or a “tear down” and building from the ground up, as well as adding improvements to your own home or a property purchased out of foreclosure. Borrowing money for these types of projects is better than draining your own funds because, as all good real estate investors know, using leverage increases the return on your investment and allows you to invest your money elsewhere. With a construction loan, borrowers only need to invest a minimum amount of funds into the project (generally 5-20% of total project cost) and can finance the rest. Simply put, using debt to finance the building makes your home an even greater investment.

They also offer safeguards that help keep your project on time and under budget. First, the bank issuing the loan works hard to ensure you are working with a reputable builder. Most banks require that the construction loan request include a contractor package that needs to be approved. If your builder has bad credit problems, past lawsuits or has received complaints to the licensing board, the bank will generally catch this information and reject your builder. Second, the bank issuing your loan watches the construction process from start to finish. Unlike loans that are issued as a lump sum, with a construction loan the bank requires that your approved contractor submit for draws to get reimbursed as each phase of work is completed. The bank even schedules site visits to ensure that the work is done in a satisfactory manner and on time. The bank is offering to do due diligence on your builder and project.

Upon completion of the construction phase, some loans seamlessly rolls to permanent mortgage which is why they are known as a “one time close”. What will you have achieved by building your own home? Even more than the satisfaction of living in your dream home, the result and impact on your balance sheet can be dramatic. Upon completion, you will own a home valued at the full market price of a new home for the cost of the land purchase and construction, often as much as 25-30% less than the retail market value.

How to Choose the Right Custom Home Builder Helping You Build Your Dream Home

Have you made up your mind to renovate or build a new house? Don’t know where to start from? Why not start with hiring the right planner that fit your needs, stay within your budget and help you construct a quality home that not only fulfill all your desires but also provide the personal attention that you deserve!

Believe it or not, finding the best contractor for carrying out your home improvement process is a nerve-racking task to kick-off with. With so many options available in the market these days, it becomes more and more difficult to choose an ideal designer that not only designs a custom dwelling for you, but also makes your dreams come to life by providing you with top quality service and craftsmanship at each phase of the home renovation process.

Choosing the right construction company is one of the most crucial decisions you’ll have to take in your home renovation process in order to construct the abode of your dreams. So, it is important that you make use of some proven techniques so as to speed up your research & selection process and prevent your home-building experience from becoming a nightmare.

Step #1: Define your needs

It is important that you determine both your current and future requirements for your house, which includes size, design, price range, type of abode, and so on. Also, you can do a bit research by visiting different home builders’ websites and checking out different designs they provide.

Step #2: Hire an experienced architect rather than a new one

Choosing an experienced and well-recognized designer is the most important step to consider when it comes to fulfilling all your basic home building requirements, which includes budget handling, customer satisfaction, warranty & service, and more.

Step #3: Ask for referrals

When it comes to finding the right custom home builder, you must ask your friends, family, colleagues or even your neighbors for recommendations.

Step #4: Make sure the company is licensed and insured

It is important that you ask for licensing and insurance as this will legalize everything and will put an end to corruption.

Step #5: Choose the right home builder

No matter what your requirements are, picking the right designer can help you carry out the complete home improvement process in a sophisticated fashion and take your lifestyle to the next level. They play an indispensable part in making the process trouble-free and reverent.

Building Your Dream Log Home

Are you the type of person who dreams of really getting back to nature, to have that little (or moderate sized) house in the woods with a babbling creek nearby? Then you may have also been imaging a log home. But what is involved in building this unique structure?

The cost of building a log home is often virtually the same as a conventional house. However, in some cases, it can be as much as 50 percent more, depending on the style and amenities. This increase can also be attributed to the additional labor costs to construct a log home in your area..

Buyers have the option of purchasing a precut home “kit” or package from a manufacturer, or hiring a contractor to build a custom, handcrafted home. Transportation costs must be factored in to the complete budget if the products are being purchased out of state, or any distance from the building lot.

Finding a contractor that has the qualifications to build a log home is critical. Get quotes from three companies, and ask to see portfolios and references as to their background and experience. You may also want to speak to log home manufacturers for recommendations on qualified contractors.

Several components should be addressed in the price quoted from contractors. These include (but are not limited to):

* the primary cost for the basic structure

* all fixtures for lighting and plumbing

* electrical materials and installation

* interior doors and all hardware

* drywall on all rooms selected for finishing

* fireplace materials and completion

* windows – including sills and trim

* cabinets, including countertops

Providing the general contractor duties yourself can save a significant amount of money, but it could also cost you equally in time and frustration, especially if you are not experienced in the process.

The cost of building a log home can vary, especially from state to state where the cost of living varies greatly. This is another reason why quotes should be obtained from builders familiar with the construction process of log homes.

One very important factor is to have adequate protection from moisture via the roof design, including proper overhangs and eaves troughs. Exterior finishes to protect the wood are also crucial. As in any home with wood siding, the amount of exposure to the elements will determine the maintenance schedule. Excess sun, wind or rain may require refinishing the logs on your home more frequently.

Contemporary Home Builders – Building Your Dream House Effortlessly

Are you getting excited about building your dream house? Want to make the process easy and stress-free? Why not hire contemporary home builders and avail yourself a number of home designs that not only suit your budget but also fulfill all your specifications!

When you think of building a new abode or renovating the existing one, the first thing that strikes your mind is how to get it done. No doubt, you’ll be thinking of carrying out the complete process on your own as there’s nothing more special than decorating or renovating your home with your own efforts and creativity. Once you finally decide to work on your own and manage your finances accordingly, you must never look back or feel depressed at any instant of time as this will break you from inside and will tear you apart thereafter. If in case, you feel like you are not made for this task, you must hire an expert who will build your dream home based upon your specifications and will carry out all the necessary tasks effortlessly.

Your specifications may include factors like:

Total number of rooms to be included

• Type of furniture to be used

• Type of doors and windows

• Colour of the walls

• Floor ideas

• Different kitchen designs

• Type of lighting to be used

• Carpet colour for your living room

• Bathroom style

• Bedroom design

• Roofing system

These are some things that you must include in your ‘To-Do’ list while narrating your specifications to the builder you hired. Before hiring a builder, it is important that you find out what exactly you want, i.e. what kind of house you are about to build. Once you decide on what home design to choose, you can move on to the next big step, i.e. setting a specific budget. Make sure the design you choose fulfills all your expectations and suits your budget plan too. Moreover, you must choose the right professional who not only carry out the process meticulously but also make sure that your house plan works best for you in the best possible fashion.

Once you give your best shot in order to kick off the renovation process in a well-organized fashion, you must pay attention to certain factors that can play a great part in making the process go a lot more fluently. This is where the importance of an experienced professional come into the picture, so it is important that you pick a perfect consultant or architect to take care of the complete designing process, seek other professional advice as required, take care of the future trends and pick a design accordingly, make a list of all the things that are involved in the process of home renovation, and more.

Don’t Hunt for a New Home – Build Your Own Dream Home!

While buying may seem practical in the short term, building a house can provide more benefits, in the long run, especially if you choose the right builder. Building a house is much more beneficial than buying one. There are seven reasons why you should consider building your dream home instead of settling for an existing property:

1. Save time – Several factors could influence your house hunting experience, and these include the location, price, condition of the house, negotiations with the previous owner or the bank, and legal issues. You have fewer things to worry about when you decide to build your home. There are builders that can help you find the right financing, too.

2. Get what you want – Searching for the perfect house can be difficult. Even if you think that a property is great, there will often be something in that place that is not quite right. Building your home ensures that you can get exactly what you want in your dream house. Hence, you can be sure that everything is perfect for you and your family.

3. No repairs – Because it is new, you do not have to worry about costly repairs, maintenance, and renovations. If you need extra rooms, you can let the builder know during the design process, so they can incorporate it to the new plan and give you exactly the house you want.

4. Modern build and design – Everything about your dream home will be planned and put together in your way. You can be sure that the property is designed to suit you, your needs, and your lifestyle, and that it complies with the standards of modern design. A modern build may provide helpful features like environmentally friendly doors and windows and an energy-saving layout.

5. Build wherever you want – Location is one of the biggest aspects of selecting a home. When you build a house, you can decide where it should be. Do you want to be close to your parents’ home, schools, offices, and shopping centers? You have full control.

6. Everything is up to you – Choose your own interior, appliances, design, and fixtures. Moreover, you get to experience a better sense of ownership when you build your dream home.

7. A worthy investment – Building a new home is always a good idea if you intend to sell it in the near future. It will fetch a better resale value because it is less likely to be outdated.