Are you a future homeowner who is interested in building the custom home of your dreams? If so, you have likely spent countless hours daydreaming about all of the amazing features you plan to include. It’s natural to get swept up in the initial excitement of the decision to build a custom home, but maintaining a firm grasp on the reality of your budget moving forward is essential. Let’s explore three ways in which you can manage your budget expectations and arrive at a realistic custom home budget.
The Power of Loan Pre-qualification
Getting pre-qualified for a loan is the first step in the mortgage process, yet many people are reluctant to pre-qualify before visiting home builders. Without a clear understanding of what you can afford, you run the risk of falling in love with a home that is out of your budget. If you want to set yourself up for success instead of disappointment, meet with a bank or lender who can evaluate your finances. Pre-qualification, unlike pre-approval, does not require an analysis of your credit report. After considering your debt, income and assets, a lender can estimate the loan amount for which you might expect to be approved.
Research Homes in the Area
The cost of your custom home will depend on various factors including design, size, and location. If you want to get a ballpark idea of how much building a home will cost in one of your desired locations, drive around and do some research on the cost of similar real estate in the area. When it comes to custom home design, remember that you must consider both the price of the home and the price of the land. Interested in a Robin Ford Home? Explore some of our sample floor plans and pricing.
Prepare to be Flexible with Your Custom Home Budget
While a lender may have provided you with a seemingly accurate estimate during the pre-qualification process, it is important to remember that this amount is not a certainty. The final amount you are approved for is dependent upon your loan application, credit score, and mortgaging options. Prepare to be flexible in the event that you do not qualify for the amount you were expecting. Building a custom home takes roughly 6-7 months depending on the scope of the project and season. It is best to prioritize the features that matter most to you within your design in the early stages to minimize indecision and ensure a swift home building process.
Ready to Budget for Your Dream Custom Home? Contact Robin Ford Building and Remodeling Today!
Are you are ready to live in a beautifully crafted high-quality custom home? With over 30 years of award-winning custom home building experience, Robin Ford and his team of expert craftsmen have earned a stellar reputation for their commitment to quality. Click here to learn more about our financing options and how we can help you find a home within your budget.
As an Indoor airPLUS Partner, ENERGY STAR® Partner, Certified Green Professional, and Maryland’s only proud member of the exclusive Southern Living Custom Builder program – Robin Ford Building and Remodeling, Inc. is equipped to build you a home that your children’s children will want to own.