The process of coming up with a plan to build your luxury custom home is an exciting time for you and your family. The custom home building process starts with determining a budget and setting a timeline to move in. Let’s start by discussing the budget.
Determining Your Budget
To determine your budget ask yourself these questions:
* Am I going to pay cash?
* If not how much am I going to finance?
* If financed, what monthly payment am I comfortable with?
* Keep in mind you need to factor in:
* Property Taxes
* Homeowner’s Association Dues
Most banks can get you pre-qualified in a day or two, but don’t think this is a loan approval. It’s just a preliminary look at your finances to determine what they believe you can afford. Once you have a pre-qualification approved you can now start confidently looking for a lot and a builder.
Once you find the lot and builder the next step is to get officially approved for the loan and close on the lot and construction loan (We’ll talk more on this in another email). The process to close the loan usually takes anywhere between 45 and 60 days.
If you are leaning towards financing your custom home, and don’t know which banks to talk to about it, please let us know and we can refer several we do business with frequently.The options you choose for a home are only limited by you and your team’s imagination. Thus, to keep from building a home that can get seriously out of hand it’s prudent to set a budget.
One thing that a homeowner can sometimes forget is that a designer/architect is there to help put his/her ideas to paper, and the builder’s job is to take what’s on the paper and make it a reality. If you do not set a budget to work within then the sky is the limit, which almost always results in the future homeowner getting upset and discouraged as what is designed is not financially feasible. However, if a budget is set in the beginning a home can be designed and built exactly the way you want and love.
It’s also important to know when you want/need to be in your new custom home. In most cases, for a true custom home, take into consideration the following:
*How long will it take to find the lot you want to build on?
– This varies on the part of town you’re interested in and the available inventory
*Time to obtain financing (if not paying cash)
– Usually two months
* Time it takes to create the floor plans and permit the home for construction
– Usually four to six months
– Usually nine to twelve months
As you can see the total time, from putting the lot under contract to move-in, is usually between fifteen to twenty months. If it is critical you move in prior to this range your best solution is a spec or semi-custom home.
A spec home is a home that a builder decided to construct without having an end buyer. Refined Custom Builders usually has several inventory homes you can choose from. You can view our available inventory here.
A semi-custom home is usually a floor plan a builder uses quite often, but may change some of the finishes like tile and paint colors. They can usually be constructed quickly as they have built this house over and over again, just with minor variations.
Once you know your budget and timeline it’s time to move on to the next step which is choosing your lot.
Want to get a feel for the type of home that’s right for you in terms of size, rooms, amenities, and build time?
Most of the custom homes we build fall into four categories. Find out which category is a match for you based on your answers to a few simple questions. It takes less than a minute! Click here to get started.