Building a home doesn’t have to be expensive. In fact, with careful budgeting, comparison shopping, and a willingness to keep things simple, it can be very affordable. However, mistakes made during the building process can quickly put you over-budget. If you’ve never dealt with building a home before, it’s easy to make some of the more common mistakes that come with the project. Unfortunately, many of these simple errors are very costly. Here are some tips to help you avoid these mistakes so you can build the perfect home without any unexpected surprises.
Watch Your Mortgage Costs
With every addition to the design, your overall mortgage cost increases. Upgrading materials, making changes during construction, and unexpected delays can all increase the cost of your home, which means your monthly mortgage payment will go up. You’re going to be paying on your home for anywhere from 15 to 30 years, so make certain that payment is something you can make without difficulty.
Understand the Bidding Process
Construction bids can be challenging to read, so many people just skip to the end and base their decisions on the final price. But going with the lowest differ is not always the best plan, and in the end, it can mean paying more. You want to make sure you’re hiring a competent construction crew that will build you a quality home without making basic mistakes or falling behind schedule.
Carefully Select the Location
Real estate is all about location. When you’re looking at lots to purchase, you want to make sure you’re buying land that’s in the right location. Don’t buy the last lot in a subdivision just because it’s the only space left in that neighborhood. If it’s not right for you, don’t buy. Consider your commute to work, nearby amenities, the school district, the amount of traffic on nearby streets, and all other factors before you buy a lot to build on.
Finalize the Design Before Construction
It’s easy to make changes during the design phase. Everything is merely lines on paper and a list of the materials to use. Changing out a few things and re-running the numbers to see how it impacts the budget is all theoretical. Once construction begins, however, making changes can mean tearing down walls, ripping up floors, and other costly things. If you change your mind on flooring after that floor is down, you have to pay for both materials and the work it takes to remove the first floor and put down the second. All of this dramatically impacts your overall cost and mortgage payment. Make any changes before construction begins.
Consider Your Needs First
One way of avoiding the mistake of changing things during construction is to also avoid the mistake of failing to consider what you need in your home. Think about the future in addition to the present, too. Are you planning on expanding your family soon? If so, you might need one more bedroom than you initially thought. Will you want an area for a home office or gym? Do you regularly have guests overnight? Do you host a lot of dinner parties or love to cook? The answers to all of these questions and more will affect the size of the rooms and their layout. Making a list of all of your needs for now and for up to ten years in the future will help you design the right home.
Know Where to Splurge
There’s absolutely nothing wrong with splurging a bit here and there. It’s knowing which amenities are a must-have and which belong on the would-be-nice list that’s important. If you love granite countertops and want to have them in your kitchen, plan on that expenditure from the beginning. Don’t decide later on that you want to install upgrades, especially if materials have already been purchased and construction is underway. Think about what you want to splurge on and prioritize those things you really, really want. This will help prevent any impulse buying later on.
Don’t Buy Expensive Things During Construction
You may be so excited to move into your new home that you start buying expensive furniture and other items before construction is even finished. Do your best to avoid this temptation, too. All of these purchases can affect your financial standing, especially if you buy them on credit. This can impact your mortgage if you haven’t signed all of the paperwork yet. Your lender may see that your debt-to-income ratio has suddenly changed, and that can make them concerned about your ability to pay your monthly mortgage.
Find the Right Builder
Finally, one of the biggest mistakes you can make is going with a builder who doesn’t really understand what you want with your home or who isn’t experienced. Make sure to read reviews on all potential builders, ask them any questions you may have, and even check referrals and references before selecting a bid.
Enjoy Your Home and Your Low Payments
If you keep all of these tips in mind and avoid all of these costly mistakes, you’ll be able to enjoy your new home without worrying about how you’ll make your mortgage payments. Simply remember to plan things out, keep your mortgage payment in mind, have the right location, and understand how the building and bidding process work. Finding the right builder, of course, will help you avoid many of these mistakes. Belman Homes is here to assist you with all of your home building projects. With years of experience, these experts understand how to avoid common mistakes. With Belman Homes on your side, your home will be perfect and affordable.
