A Home Construction Budget
That Keeps You Out of the Hole!
Yourhome construction budget, building costs, house plans, and home loanapproval will all determine whether or not building a new home willbecome a reality. BuildWiselyTMoffers valuable information for creatinga construction budget that you can live comfortably withwhen planning, building, and living in the home of your dreams!
Too often homeownersget into a bind when their budget gets out of control.When you plan wisely you will know the measures it takes to keep itit control!
BuildWisely'sHome Planning Guideshows 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...
Plan Your Construction Budget With Confidence
Toooften 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.
Isthe "American Dream" of home ownership putting us in debtpast our ears? It doesn't need to. When you plan "Wisely",you can...
Buildthe Home of Your Dreams
at a Price You Can Afford!
Thereare several financial issues to consider when putting togethera home construction budget when planning your new home. And decidingwhat you should spend is one of the first issues to tackle.
Don'tbe led or coaxed into stretching your home construction budget to thelimit. Find a realisticconstructionbudget-one that you can easily stick to-so living in your new homewill be much more enjoyable.
It'scertainly not necessary to "Keep up with the Joneses" anylonger-so why try. Who knows, by the time you're finished withbuilding your new home even the "Joneses" could be envious!
#1- Compare Your Expenses Vs Income
Beforeyou can even begin to put together a homebuilding budget, it is imperative to know exactly where you standfinancially.
List all Your Monthly Income
List all of your Monthly Expenses*
Subtract: Monthly expenses, investments, and savings - Monthly Income = House Payment
*Allmonthly expenses include everything from your car payments down toall the little stuff you spendevery month. Don't include your current house payment and relatedexpenses-unless you will be keeping it.
BuildWisely'sHome Planning Guide will helpyou easily figure all your expenses and also help you determinea house payment that you can truly afford as well as help you refineyour construction budget.
ClickHere for BuildWisely's Home Planning Guide!
Afterdiscovering what kind of house payment you can easily affordyou're able to figure the total amount this payment will allow you toborrow for your home constructionbudget. To find this amount, enter your desired house payment alongwith a current interest rate in a mortagage calculator to get an ideaon the total amount of your home building budget:
Ifthe mortgage calculator came up with an amount that doesn't affordyou a home in a price range you desire, check out this next step...
HomeBudgeting Tip #2 - Reduce Your Debt
Inorder to do a great job planning your new home, it will take at least12 to 18 months... so why not get rid of that heavy debt in theprocess!
ImproveYour Credit Score! Your financialstatus and credit scores will look much more appealing to lenders aswell as yourself, plus you will feel less burdened when you havelittle or no debt. In addition,your home construction budget may also be increased when you reduceyour debt.
It'squite possible to get rid of most if not all of your debt during theplanning stages of your new home-when you create a good debtreduction plan-and stick to it.
Beginby taking a look at all the unnecessities you are currently buying todiscover areas where you can conservespending.
Mostlikely, you'll be shockedto learn how much money you can actually saveeach month by just cutting out a few non-essentials. Now, use thisexcess money to...
PayOff Your Debt-One Debt at a Time!
Ifyou are in debt more than you would like to be,BuildWisely'sHome Planning Guideoffers a great Debt Reduction Plan that you can easily doyourself. 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!
DebtConsolidation Loans are another wayto lower your overall payments and can help you pay off your debtmuch quicker.
Thekey to making a debt consolidation loan work for you is to make anextra "principal payment" every month in order that you payoff this loan at a much faster rate.
Creditcounseling services is often sought out when families find themselveswith far too much debt. Before signing up for this service, it iswise toget all the facts:
TheFederal Trade Commission, a government consumerprotection agency, offers invaluable information on this subject as well as many others.
HomeBudgeting Tip #3 - Plan Your Home "Wisely"
Someof the best homes as well as rooms are the product of creativethinking. Rather than going out and buying the biggest and best ofeverything plan to...
"Builda Quality Home Structure First, andthen put the added luxuries secondary on your priority list!"
Youcan always add architectural embellishments and decorating featuressuch as extravagant trims and moldings-or even that marble flooryou've always wanted-after your home is built.
Itis far more costly to add to a home's structureafter it has been built. Therefore, it is wise to put your moneywhere it counts... FIRST! Whenplanning "secondary priorities" that require plumbing,electricity, and extra structuralreinforcements...
...it is a good idea to install everything needed that goes behind thewalls, under the floor, in the ceiling, and/or under the ground whenyour home is initially built. Then, when you are ready to add thatluxury, just hook it up and/or plug it in!
BuildWisely'sHome Planning Guidewill show you many ways to make your money count. It will alsoshow you ways to save money by planning for future additions withouttearing out what has already been built.
HomeBudgeting Tip #4 - Get Accurate Construction CostsLumber pricesvary with the ever changing stock market. And recently, the prices ofplywood and other sheathingproducts have drastically increased, which has prompted some builders to look for alternative means. It is always wise to consider how lumber and othermaterial price fluctuations canimpact your construction budget.
HomeBuilding Estimates are good to get a general idea of the cost tobuild your home, but to find more accurate building costs you willneed to do some heavier research.
Thereare several other factors responsible for driving up constructioncosts. Below are a few of those, including some often forgotten whenthinking of home building:
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.
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.
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 low water use lawnscaping techniques, 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.
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: 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!
A Home Alarm Systemis 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.
Contractorsmay use to help them figurea job and if you are really wanting to count your dollars, this is agood place to get a general idea for labor and material costsinvolved in building your home.
Keepin mind that you will want to compare costs that correlatewith the part of country in which you are building, because the costto build in your area could be drastically different.
HomeBudgeting Tip #5 - Get a Great Loan Package
Ifyou will be borrowing money to build your new home, you will likelyneed to obtain two different loans:
A Construction Loan
Becauseeach of these loans come in so many different packages, it isimportant to know every detail of the loan before you put yoursignature on it.
Ifyou are not aware of all the loandetails, including the interest rate, loan payment amount, closingcosts, and added fees, it couldput you in a higher house payment and a much longer relationship withyour mortgage than you had anticipated.
TheReal Estate Settlement Procedures Actwas enacted for the purpose ofprotecting the consumer by forcing loan institutions to disclose allfees and details of a loan.
ClickHere for important information about The Real Estate SettlementProcedures Act!
Getall the facts when applying for a loan so that you can truly compareapples to apples with other loan packages.
Thereare other loan sources to take a look at, perhaps you may find thetype of loan Atimortgagecentral.com, you have total control when you're shopping fora loan. We have created a secure, stress-free environment to shop forany type of loan (conventional loan, FHA loan, a non-conforming,Jumbo or sub-prime).
HomeBudgeting Tip #6 - Hire the Right Contractors
Whetheryou hire a general contractor or act as your own general contractorthere will likely be several different "sub-contractors"required to build your home.
Theright contractor or sub-contractor may not necessarily be the personthat gives you the lowest bid, but is the most forthright,well-organized, and skilledprofessional that you choose to hire. Clickto obtain a "BBB Reliability Report".
There is a specificcase I've been made aware of where the lowest bid has ended upcosting far more that the highest bid in addition to leaving thisunsuspecting homeowner with a poorlyconstructed and unfinished home.
Bevery "Wise" whenchoosing anyone to help build your home. Not only are you entrustinghim or her to show up to the job site, but you are also entrustingthat person to do the job with quality and within a reasonable amountof time. Clickfor more information on hiring contractors.
HomeBudgeting Tip #7 - Stick to Your Budget Plan
Ifyou would like to be able to move into your home once it's finishedyou must stick within your construction budget constraints. It isalso a wise idea to have a extra money in savings stored away forsafe keeping.
Don't become one of theunfortunate persons who have losttheir home before they had a chance to move into it. Yes that'sright. If you go over your construction budget, it is possible thatyou cannot close on your home making it necessary for it to be soldbefore you even move in!