How Can You Pay for a New Custom Home?

Digmaa

November 07,2014 in Pre-Project

Many people dream of building custom designed homes with floor plans and decor tailored to fit their life>


Location


A major factor in the cost of custom built homes is the location. Many new luxury homes are built on high-end properties in high-end neighborhoods. These properties can add to the cost of custom designed homes significantly. Go in with a budget, and then choose a location that fits that budget. Choosing the right neighborhood can help you cut costs before you even start building.


Loans


Most people can’t afford to buy luxury homes using out-of-pocket funds. Chances are you’ll need a loan to pay for that house. Find a good lender, or talk to your financial advisor about the best way to proceed. There are plenty of financing options out there for people looking to build luxury dream homes. Mortgage brokers and mortgage bankers can both help you in different ways, so make sure you do your homework before you settle on a lender and a loan.


Before you look into a loan, however, ask about how much you’ll need on hand for a down payment, and don’t proceed until you have that amount. Make sure your current income will be able to support monthly payments as well. Your real estate agent and builder may need to see proof of these funds before they enter into a contract with you.


Over Runs


There’s a very high chance that the cost of building your home will run over it’s expected budget, especially if you have to make changes along the way. Make sure you have enough money to remain flexible during the building process, or you may find yourself in debt.


It’s always best to save up and have as much money on hand as possible, but there are still plenty of options for financing. If your dream is to own a custom home, there are plenty of ways to make that happen on a smaller budget. Just talk to your builder and figure out a plan to move forward.


Source:  http://goo.gl/MpaURC