How easy is it to build your own home?

Tuesday, March 22nd, 2016 at 12:00pm.

How easy is it to build your own home?

If you have the time and money, building your own home is the only option that ensures the home is everything you want and need. Your imagination and your budget (and any rules and regulations the property must legally abide by) are your only limits. Unless you are buying all the tools and materials, donning a pair of carpenter’s overalls and a hardhat, and constructing it with your hands, building the home is a relatively easy and straightforward process if you seek out the proper guidance.

The steps to building your own home are:

Find the land

First, you need to find the plot of land you want. Speaking to a real estate agent who specializes in land purchases will help expedite the process. They will know the lots available that meet your requirements in the areas you most desire. After you find one that is the size you want in the location you want with the landscape you love, there are other things to take into consideration. Is it equipped with utility connections? If it isn’t, having power and water stubbed in is a significant expense. Are there building setbacks or usage restrictions that could inhibit what you have in mind for your dream home? Your real estate agent or the local planning and zoning department can help you find the answers to these questions. If everything meets your requirements, it’s time to buy! Whether you pay with cash or take out a land loan, you’ll want to get that piece of land off the market, so you can begin focusing on construction. 

Create a construction plan to build your home

 When it comes to designing the home, there are few ways you can go about it. You can find a floor plan on your own or hire an architect.  With a quick Google search, you can uncover numerous companies with floor plans that you can purchase and then bring directly to a builder. This is the least expensive option but offers the least amount of flexibility. A builder can customize certain elements of the floor plan, but they are not architects. Frequently a builder will have floor plans of their own in a handful of variations if you wanted to explore that option as well. If you want to be able to truly let your imagination run wild with a lot of customization, you’ll want to hire an architect. They can make your dreams a reality, while making sure everything is structurally sound and legal.

Secure the home building funds

You have the lot and an idea of what you want to build. Now you need the approval to build and, of course, the money.You’ll need to submit the building plans to the county for approval and obtain a building permit. Then, unless you have the money saved, you’ll need a construction loan.  These are usually one-year short-term loans, and interest rates on them are higher than those on permanent mortgage loans. Lenders will need to see the construction plan, the timetable, and the expected budget. One option to inquire about is construction-to-permanent financing. That means the construction loan rolls into a mortgage creating a 30-year loan with a single closing.

Buying Land to Build Your Home

After that, contractors will take over much of the work. Building a home takes four to six months to complete. Depending on how much time it took to find the lot, procure a construction plan, and obtain a loan, it could take the better part of a year. However, it is the one way to get into your unique dream home, so if you have the time and money, it could very likely be the last time you ever move. If you’re ready to buy land to build your own home, contact the Northrop Team today! 

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