Where Do I Start?

Whether building, adding or remodeling, this is the question most often asked by homeowners. The answer is always the same: Start at the very beginning. In construction, as in most other things, that means doing your homework. 

First of all, find out how big a house you can afford. It is a very important, because you will know your price range and what to expect. It will also save you tons of time.

Then determine how big a house you need. You be able to afford $495,000 home of 4500 sq.ft., but in reality you only need a 3,000 sq.ft. home and you will be comfortable in it. Remember, extra square footage costs money in construction and maintenance, as well as in furnishing. Plus – someone has to clean it, too.

Start with a dream home. List all the features you want to have in it (now that you know what you can afford, dream in your price range).

Downsize it to all you really need. Cross off your list everything you don't really need, everything you won't miss.

Find a lot or land. This is the place where you would like to build your home. The price of the lot, the shape of the lot and covenant restrictions will help you in choosing your home plan. Perhaps you should have a Realtor for this purpose. If you do not have one, we will be happy to recommend to you a few good Realtors that know what they are doing.

Find a plan. Check the Internet, check out some books or talk to an Architect and a Builder (if you do not know any, we will be happy to make a recommendation).

Discuss your plan with the Builder. Often the Builder will be able to help you with some floor plan suggestions that can save you a lot of money. For example: it is a lot cheaper to have rooms in the roof instead of building a 2-story house; having the same square footage will cost you less.

Try to create the budget. Try to run some numbers and talk to people who can help you, such as Builders, General Contractors and Loan Officers that specialize in the construction loans. Here you can download a Cost of Construction Worksheet.

Project the time-frame for your project. It is important because it may cost you extra money. For example: it is not wise to start building in the middle of winter or in the rainy season. Lots of delay will cost you lots of money.

Ask questions any time you do know or do not understand something.

How Do Construction Loans Work?