Are you a potential homeowner who is interested in constructing the custom home of your dreams? If so, you probably spent countless hours daydreaming about the amazing features you plan to include. It’s natural to get excited about the decision to build a custom home, but keeping track of your budget moving forward is vital. Keep reading to learn how to manage your budget expectations for your custom home.
Consider a Loan Pre-Qualification
Getting pre-qualified for a home loan is the first thing you should do in the mortgage process. However, many people are hesitant to pre-qualify before visiting home builders. Without clearly understanding what you can afford, you risk falling in love with a home you won’t be able to afford. To set yourself up for success, meet with a lender or banker who may evaluate your finances. Unlike pre-approval, pre-qualification doesn’t require an analysis of your credit report. After considering your income, assets, and debt, a lender may estimate the loan amount you expect to be approved for your custom home.
Research Homes Around the Area
The cost of your custom home will vary on different factors, including size, design, and location. If you want to receive a ballpark idea of how much a home construction will cost in one of your desired areas, drive around at different times. Also, complete some research on the cost of similar real estate around that area.
Regarding custom home design, remember that you should consider the price of the home and land. Are you interested in a Robin Ford home? Please explore some of our sample floor plans, along with pricing.
Prepare to be Flexible with Your Budget
While a lender might have given you an accurate estimate during the pre-qualification process, it’s vital to remember that this amount is still debatable. The final amount you receive approval for depends on your loan application, mortgage options, and credit score. Also, prepare to be flexible in case you do not qualify for the amount you were expecting. So, it’s ideal to prioritize the features that matter most to you within your custom home design to reduce indecision and ensure a smooth home-building process!
Robin Ford Can Help You to Build the Custom Home of Your Dreams!
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.