Posted on: 23 August 2017
Building a new home can be one of the most exciting experiences of your life. There is nothing quite like designing your own home and then having it appear right before your eyes. Having control over all aspects of a home truly is invigorating. You can pick everything to the outside siding, trim, cabinets, countertops, flooring, and the list goes on. It is important that you realize that with building your own home, there are a few things that are different than buying. Here are a few things that new home builders should remember:
One major difference between building and buying a house is the loan that you will have to take out. A building loan is structured differently than a normal loan. The biggest difference that you will find is that the building loan has a very high interest rate. This is because the building of your home should not be extremely long. However, a few months of the interest rate can really cost you a lot of money. If the closing on the home is prolonged you could pay even more in interest.
Whether you are building or buying a home, your credit is going to be a major factor. However, as mentioned before a building loan has a very high interest rate. For this purpose, a good credit score is absolutely vital. When you decide that you are going to build a home, check your credit. You will be able to see your credit score, but more importantly, you will see your credit report. The report will show you why your score is where it is. The report will show you any late payments, collections, or any other negative item that may be on there. It is important that your score is as high as possible to get you the best interest rate. If your score is low, then hire a credit repair company to help you improve your score through challenging negative items on your report.
The contractor that you choose will be a very important part of the process. You want a contractor that is known for being a fantastic builder, but you also want a contractor that gets the job done quickly. The longer the loan is open the more interest it can build. When looking at potential contractors ask to look at their portfolio so you can get an idea of their work, but also ask how quickly they were able to accomplish the job.Share