Great New Year's Resolutions to Help You Build a New Home in 2020!
Many New Year’s resolutions fail because they are made “in the moment” and without a realistic plan to see them through. Proper planning and a commitment are key to achieving any significant goal – – no matter what the time of year. And that especially holds true for building a new home! To help you get your ducks in a row, we compiled a few manageable New Year’s resolutions to help you plan for & get the new home you want.
#1: Figure Out What You Want
This may sound obvious but doing your research and compiling a list of your must-haves up front will make the building process quicker & easier. Separate your list so one column lists things you NEED and the other column lists things you WANT to have in your home. Then, prioritize them. With this process already done, you’ll know exactly which features you can drop if the budget becomes an issue.
#2: Figure Out Your Finances
Before you start looking over floorplans with your builder, talk to a lender to find out how much money you can afford to borrow. Review your credit reports to make sure everything is accurate. Gather and organize all of the financial documents you’re going to need when applying for your mortgage.
#3: Get Familiar with the Home Building Process
When you’re having a new home built, it pays to have an understanding of the process. Building a home from the ground up is a lengthy process involving a lot of decisions not just limited to design selections. Talk to your builder and have them explain every stage of the building process, the timing, and your involvement in each, so you know what your role is and what to expect once building begins.
#4: Get Organized
Building a home is a complex process. Being organized will make it much easier for you. Create a folder or binder to keep all of the papers related to your build. Here’s a few examples of things to keep in your folder:
- Credit report information
- Monthly home budget
- All financial statements needed to apply for the mortgage
- Pre-approval letters from your lender
- Your wants and needs list
- Research (builders, realtors, lenders, floorplans, neighborhoods, lots, etc.)
- All contracts and agreements related to your property or home
- All future documents related to your home (appraisals, offers, etc.)
5: Understand How Loans Work on New Construction
When you’re building a new home, your mortgage loan may be different from that of someone buying a pre-existing home. Check with your builder to see how they fund construction. If you are working with a smaller builder, you may need to start with a construction loan. If you are working with a larger, more established builder, they may fund the construction and simply require you to pay a non-refundable deposit. Once the home is built, your mortgage will be used to pay off the balance of the construction loans.
#6: Commit to Your Must-Haves
During the design phase, you’ll have a lot of decisions to make. It can be overwhelming, but this is where you “must-haves list” comes into play. Each choice you make typically comes with a more expensive and least expensive option. Even if it means not getting absolutely everything you want in your home, commit to choosing quality for the must-have items over saving a few bucks. In a new home build, you really do get what you pay for.
7: Choosing Your Builder – Do Your Research
How do you know which builder is the right one for you? The key is to do your research. Ask people you trust for references. Visit builder websites and read client testimonials. Meet with the builders you are most interested in and ask them for a list of references. Reach out to those references to find out what their experiences were with the builder and whether or not they would recommend the builder to others in their family. Also compare the builder’s standards and warranty information.
#8: Limit Your Major Projects for the Year
Building a new home is very rewarding, but it can also be stressful time. If possible, don’t take on additional major projects or purchases during the building process. Focus this year on building your dream home. You’ll stay saner and be able to focus on and enjoy the building process.
Looking for a builder in the Capital Region?
Since 1977, Belmonte Builders has been building high quality homes in the Capital Region. A family-owned business, Belmonte takes pride in working closely with each customer throughout the construction process to personalize their home to meet their unique needs and then build it to exceed their expectations.