A Home Construction Budget
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Too often homeowners
get into a bind when their budget gets out of control.
When you plan wisely you will know the measures it takes to keep it
it control!
BuildWisely's Home Planning Guide shows you great ways to:
Find a budget that you can truly afford.
Reduce your existing debt without taking out an extra loan.
Protect yourself by hiring honest and reliable Contractors and Sub-contractors.
Control exactly where your money will be spent and prevent construction liens from being placed on your property...
Too often we don't have and good home budget and buy or build homes beyond our means, which results in keeping us strapped with high house payments and low living expenses.
Is the "American Dream" of home ownership putting us in debt past our ears? It doesn't need to. When you plan "Wisely", you can...
Build
the Home of Your Dreams
at a Price You Can Afford!
There are several financial issues to consider when putting together a home construction budget when planning your new home. And deciding what you should spend is one of the first issues to tackle.
Don't be led or coaxed into stretching your home construction budget to the limit. Find a realisticconstruction budget-one that you can easily stick to-so living in your new home will be much more enjoyable.
It's certainly not necessary to "Keep up with the Joneses" any longer-so why try. Who knows, by the time you're finished with building your new home even the "Joneses" could be envious!
#1
- Compare Your Expenses Vs Income
Before
you can even begin to put together a home
building budget, it is imperative to know exactly where you stand
financially.
List all Your Monthly Income
List all of your Monthly Expenses*
Subtract: Monthly expenses, investments, and savings - Monthly Income = House Payment
*All monthly expenses include everything from your car payments down to all the little stuff you spend every month. Don't include your current house payment and related expenses-unless you will be keeping it.
BuildWisely's
Home Planning Guide will help
you easily figure all your expenses and also help you determine
a house payment that you can truly afford as well as help you refine
your construction budget.
Click
Here for BuildWisely's Home Planning Guide!
After discovering what kind of house payment you can easily afford you're able to figure the total amount this payment will allow you to borrow for your home construction budget. To find this amount, enter your desired house payment along with a current interest rate in a mortagage calculator to get an idea on the total amount of your home building budget:
Click Here for a Mortgage Calculator!
If the mortgage calculator came up with an amount that doesn't afford you a home in a price range you desire, check out this next step...
Home
Budgeting Tip #2 - Reduce Your Debt
In
order to do a great job planning your new home, it will take at least
12 to 18 months... so why not get rid of that heavy debt in the
process!
Improve Your Credit Score!
It's quite possible to get rid of most if not all of your debt during the planning stages of your new home-when you create a good debt reduction plan-and stick to it.
Begin by taking a look at all the unnecessities you are currently buying to discover areas where you can conserve spending.
Most likely, you'll be shocked to learn how much money you can actually save each month by just cutting out a few non-essentials. Now, use this excess money to...
Pay Off Your Debt-One Debt at a Time!
If you are in debt more than you would like to be, BuildWisely's Home Planning Guide offers a great Debt Reduction Plan that you can easily do yourself. Our plan will show you how to:
Pay Off Debt in a Fraction of the Time!
Save Hundreds, if not Thousands of Dollars on Interest and Payments!
Improve Chances for Loan Approvals!
Pay Off Your New Home Loan Years Earlier Without Costing Extra!
Debt Consolidation Loans are another way to lower your overall payments and can help you pay off your debt much quicker.
The
key to making a debt consolidation loan work for you is to make an
extra "principal payment" every month in order that you pay
off this loan at a much faster rate. Credit
and Debt Management at E-LOAN.
Credit counseling services is often sought out when families find themselves with far too much debt. Before signing up for this service, it is wise to get all the facts:
The Federal Trade Commission, a government consumer protection agency, offers invaluable information on this subject as well as many others. Click here to gather valuable information from the FTC.
Home
Budgeting Tip #3 - Plan Your Home "Wisely"
Some
of the best homes as well as rooms are the product of creative
thinking. Rather than going out and buying the biggest and best of
everything plan to...
"Build a Quality Home Structure First, and then put the added luxuries secondary on your priority list!"
You can always add architectural embellishments and decorating features such as extravagant trims and moldings-or even that marble floor you've always wanted-after your home is built.
It is far more costly to add to a home's structure after it has been built. Therefore, it is wise to put your money where it counts... FIRST! When planning "secondary priorities" that require plumbing, electricity, and extra structural reinforcements...
... it is a good idea to install everything needed that goes behind the walls, under the floor, in the ceiling, and/or under the ground when your home is initially built. Then, when you are ready to add that luxury, just hook it up and/or plug it in!
BuildWisely's Home Planning Guide will show you many ways to make your money count. It will also show you ways to save money by planning for future additions without tearing out what has already been built.
Home
Budgeting Tip #4 - Get Accurate Construction Costs
Home
Building Estimates are good to get a general idea of the cost to
build your home, but to find more accurate building costs you will
need to do some heavier research.
There are several other factors responsible for driving up construction costs. Below are a few of those, including some often forgotten when thinking of home building:
Appraisal Fees are always necessary if you will be obtaining a loan to build your new home. If you are one of the fortunate persons who will be paying cash for your home and if there is any future chance of selling your home, it is still a good idea to make sure your new home is at least worth what you are paying for it.
An appraisal is usually required to be done by accessing your blueprints prior to a construction loan approval and then again after the construction is complete and before the final mortgage loan is closed.
Building Permits are required for building any new home - check with your local governing area for costs and details specific to the area in which you are building. You just might find your specific permit information on the internet by inputting your city, town, or county along with "building permit" into a search engine criteria, to see an example click > "Atlanta Building Permit"
Blueprint and House Plan Costs can take quite a chunk out of your construction budget. Utilizing stock house plans, whether you have modifications made to suit your specific needs or not, can help you save a bundle.
Click here to see our review of Archway Press House Plans!Builder's Risk Insurance and Homeowner's Insurance is a must when building any home as a great deal of money is at stake. However, be "wise" and make sure you are dealing with a quality insurance company that has a current "Certificate of Authority" to do business in the state you are building your new home.
Check with your state's insurance regulatory department for consumer information on insurance companies. For more information regarding policy specifics, contact a licensed agent representing a reputable insurance company and please read and understand all aspects of the insurance policy before making any decisions.
Building Material Costs vary greatly due to a number of circumstances, such as the area in which you are building, supply and demand, manufacturer's suggested pricing, and the rise and fall of the stock market prices.
Contractors often use cost estimators to help them figure a job. Check with your contractor or sub-contractor as he or she may pass on their "contractor prices" for building products and also look for those special items on sale.
Whether you choose to hire an interior designer or gather ideas on your own, there will be some research involved to find the best building materials that are suited for your particular home.
Click here for building material research tips!Home Inspectors can be an integral part of assuring that your home is being built with quality and passes the building code standards. It is wise to make sure that your home is being inspected by a qualified and reputable home inspector.
If you haven't any experience with building code specifications, it may be to your advantage to consult with a Home Inspector and other qualified professionals for this knowledge throughout the planning and buildings stages of your home.
Some governing areas require Home Inspectors to access and approve the job site several times during the building phases of the home. A charge for this service is often included in the building permit costs. To learn more check with your local planning and zoning board.
Labor Costs can vary greatly due to many factors, including the area you are building and the type of work that the laborer has been hired to perform.
Land expenses to build your home not only includes the price to purchase your land, but it also may include loan fees, real estate commissions, and other fees such as specials tax or Association Fees. One expense that you definitely don't want to overlook is Title Insurance, which you purchase to protect your rights against a property. A title search should always be done prior to purchasing any piece of land or real estate to prevent unforeseen hassles and hardships.
For Title Insurance details - click here!Finding the right real estate agent who can be in-tuned to your needs is very important when searching for that perfect piece of land to build upon. It is also vitally important that you can find an agent who will work hard to sell your current home, we've found a place that can do just that:
HomeGain: Find & Compare REALTORS®Landscaping Costs can take a huge chunk out of your building budget. If you are planning on gardening, it may be a good idea to have the land Whether you choose to have all your landscaping done at the time of construction or in several stages after moving into your home, this expense should not be overlooked.
In addition, it is "wise" to consider non-toxic and earth conscience lawncare products, gardening and household products - we wouldn't live without them.
For non-toxic lawncare info, click here!Land Survey, Excavation Costs can vary greatly due to many different conditions, such as steep land terrain, rocky soil, and the type of foundation you choose to build for your home.
For example, if you have a piece of land that is infiltrated with huge rocks, it may be cost prohibitive to build a basement. And if you definitely want to build a basement, it is "wise" to discover the soil conditions prior to breaking ground.
Loan Fees and Closing Costs vary for many reasons and you need to be aware of all costs before choosing a particular loan. It never hurts to learn all the details of a loan, but it could hurt quite a bit if you find out at closing that you can't pay all the closing costs. Be an informed consumer and check out all details of any loan you are considering putting your signature on.
State Sales Tax and State State Property Tax
Utility Installation and Hookup Fees - check with your local utility service providers for detailed information so that all costs can be accurately added to your budget. There are several options,
Electricity can be serviced from your local electric company or from alternative electricity sources. Solar and Wind Power have come a long way in recent years and if you are planning on living in your home for a long period of time, it may be worth the initial investment that can save you a great deal of money in the long run.
More about alternative electricity.Natural Gas or Propane for heating your home has been used for decades. Due to the skyrocketing fuel costs, it has forced us to consider ways to conserve energy and also look for alternative means of keeping our homes warm.
More about fuel conservation and alternative sources.Water service: City, Rural, or Well. Check your options prior to purchasing your land as the installation and/or setup fees can vary greatly from resource to resource.
Waste system: Sewer, Septic System, Lagoon Check your options before purchasing your land as well, as the type of waste system that may be available can drastically effect your home's budget as well as your water usage.
Cable/Satellite TV: Check your local service providers for more information as the services and costs vary greatly from provider to provider. It is a "wise" idea to consult with a qualified cable/satellite professional while planning your home so that all wiring and/or cables are installed properly within your walls.
Phone Service - whether you choose to be supplied from a local company or select a discount phone service - it is good to know all the details of the costs, plan options, and terms of the agreement.
Internet wiring and setup can vary greatly depending upon what type of Internet Service Provider (ISP) you choose. It is a good idea to research your best options and consult with a professional installers whether you will be using cable, DSL, wireless, or phone line connection. - Premium Internet at 1/2 price! Get NetZero Platinum!
A Home Alarm System is a small investment that can save your life. Whether living in a big city, small community, or out in the middle of nowhere - everyone can be susceptible to burglery or other crimes.
For consumer information, click here!
Contractors may use cost estimators to help them figure a job and if you are really wanting to count your dollars, this is a good place to get a general idea for labor and material costs involved in building your home.
Click Here to learn more about cost estimators and much more!
Keep in mind that you will want to compare costs that correlate with the part of country in which you are building, because the cost to build in your area could be drastically different.
Home
Budgeting Tip #5 - Get a Great Loan Package
If
you will be borrowing money to build your new home, you will likely
need to obtain two different loans:
A Construction Loan
Mortgage Loan
Because each of these loans come in so many different packages, it is important to know every detail of the loan before you put your signature on it.
If you are not aware of all the loan details, including the interest rate, loan payment amount, closing costs, and added fees, it could put you in a higher house payment and a much longer relationship with your mortgage than you had anticipated.
The Real Estate Settlement Procedures Act was enacted for the purpose of protecting the consumer by forcing loan institutions to disclose all fees and details of a loan.
Click Here for important information about The Real Estate Settlement Procedures Act!
Get
all the facts when applying for a loan so that you can truly compare
apples to apples with other loan packages. Find out more information
online from E-LOAN
There are other loan sources to take a look at, perhaps you may find the type of loan At imortgagecentral.com, you have total control when you're shopping for a loan. We have created a secure, stress-free environment to shop for any type of loan (conventional loan, FHA loan, a non-conforming, Jumbo or sub-prime).
Home
Budgeting Tip #6 - Hire the Right Contractors
Whether
you hire a general contractor or act as your own general contractor
there will likely be several different "sub-contractors"
required to build your home.
The right contractor or sub-contractor may not necessarily be the person that gives you the lowest bid, but is the most forthright, well-organized, and skilled professional that you choose to hire. Click to obtain a "BBB Reliability Report".
There is a specific case I've been made aware of where the lowest bid has ended up costing far more that the highest bid in addition to leaving this unsuspecting homeowner with a poorly constructed and unfinished home.
Be very "Wise" when choosing anyone to help build your home. Not only are you entrusting him or her to show up to the job site, but you are also entrusting that person to do the job with quality and within a reasonable amount of time. Click for more information on hiring contractors.
Home
Budgeting Tip #7 - Stick to Your Budget Plan
If
you would like to be able to move into your home once it's finished
you must stick within your construction budget constraints. It is
also a wise idea to have a extra money in savings stored away for
safe keeping.
Don't become one of the unfortunate persons who have lost their home before they had a chance to move into it. Yes that's right. If you go over your construction budget, it is possible that you cannot close on your home making it necessary for it to be sold before you even move in!