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Home Building Mistakes to Avoid at All Costs

Home Building Mistakes to Avoid at All Costs

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Home Vendor News Home Building Mistakes to Avoid at All Costs

You’ve seen a lot of amazing potential properties on the real estate market. Yet, none of them quite fit what you’d envisioned as your dream home. With each visit you make you find things that cause you to hold off on putting in an offer. Sure, you could renovate the things you don’t like or compromise in some areas, but you’ve worked hard to be able to afford a home. So, it’s only fair that it be perfect. 
That’s why many people decide to have their home built from the ground up. It gives them the opportunity to design a home that has everything they want and need to live happily ever after. Though building a home takes a bit longer, in the end, many find it to be worth the time and money invested. That is, of course, unless you make these mistakes listed below: 
Not Understanding Loan Types
Unless you have saved enough money to pay for the construction of your home, you’ll need to get it financed. Interested parties would need to apply and qualify for a construction loan. These are essentially loans provided by banks and private lenders to cover the cost of building your home. 
There are two types of construction loans. The first is a construction-to-permanent loan. This is where the loan is used to pay for the home build and then transferred into a mortgage. The second option is a construction loan only. This is a loan that only covers the cost of construction and would require the borrower to obtain a mortgage to cover the cost of this loan. 
While in some cases, it may be ideal to simply apply for a construction-to-permanent loan because it’s one loan as opposed to having to apply and qualify for two loans. Be that as it may, if you’re looking forward to finding a VA loan in California or an FHA loan in New York, a construction-to-permanent loan eliminates your ability to take advantage of these types of loans. So it’s best to weight the pros and cons when applying for a construction loan. 
Not Considering Future Needs
When most people invest the time and money to have their home custom made, they plan on living there for years to come. Yet, when it comes to the design, layout, and functionality of the property, many make the mistake of overlooking future needs. For example, if you’re a newlywed couple who plans to have children in the future, designing a home with enough rooms to accommodate your growing family is ideal. Otherwise, you’d have to pay for renovations in the future and/or relocate to find something to accommodate your needs.
Failing to Review or Request a Contract
You should never allow a contractor to begin constructing your home without first signing and/or reviewing the construction contract. More than just a quote or invoice, the contract spells out in detail what will be done, how much it will cost, and how long it is projected to take. The contract should also detail what happens and who’s liable (financially) in the event that something goes wrong (timeline missed, overbudget, contractor injury, etc). 
Not Checking In
All too often people make the mistake of signing the contract and disappearing from the construction site as they wait for their home to be built. The assumption may be that these are the professionals and that they’ll call you if something should arise, but this is your home. Waiting until everything is completed could leave you disappointed. 
Checking-in on your home build is highly recommended. It keeps the contractors accountable for remaining on task, it allows you to be made aware of issues early on in the construction process, and provides you with an opportunity to make changes as needed. While you don’t have to check in every day, a monthly in-person meeting and bi-weekly phone calls are ideal. 
Having a house built from the ground up is the most effective way to obtain the home of your dreams. With the right home builders on your side, you can design a home that has everything you could ever want or need. To ensure that your home-building experience is a positive one, just be sure to avoid the common pitfalls listed above. 



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