© Copyright Acquisition International 2024 - All Rights Reserved.

Article Image - Financial Steps to Building a House
Posted 13th August 2021

Financial Steps to Building a House

Building a home lets you personalize every aspect of where you live. You might also skip the renovations and repairs needed after purchasing an existing property, but the financial aspects of the planning and construction are less straightforward than buying a home. This guide explains the most important financial steps to building a house to know exactly what you’re signing up for before committing to any plans.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Financial Steps to Building a House

Building a home lets you personalize every aspect of where you live. You might also skip the renovations and repairs needed after purchasing an existing property, but the financial aspects of the planning and construction are less straightforward than buying a home. This guide explains the most important financial steps to building a house to know exactly what you’re signing up for before committing to any plans.

 

1. Finance the Land Purchase

You’ll need a plot of land to build your future home, but most people can’t afford to do that with cash. Land will be more expensive in certain cities, depending on nearby property values and real estate appraisals. Talk with privatized and federal lenders about getting a land loan to cover the initial purchase cost before your dream location sells to another buyer.

 

2. Inquire About Contractor Estimates

Numerous contractor teams will transform blueprints into a home. You’ll have to find construction experts, electricians, plumbers and more to pull everything together. They’ll each have different fees and schedules, so get estimates to compare prices. You may have to pay an average of $155 per square foot after adding all contractor fees together.

After you have a rough idea of how much you’ll need to pay your contractors, you can get a second loan to cover the labor fees. Keep in mind that you may need to pay multiple loan bills each month while waiting for the project to finish by this point. You should ensure that your income can cover these expenses while the construction lasts.

 

3. Get a Construction Loan

Construction loans are short-term loans that can pay for your home’s construction. It may cover just the labor or the supplies needed as well. Unlike other lending options, borrowers must pay their construction loans when the work finishes. If you’re unsure that you can pay the entire balance by that point, discuss a construction-to-permanent loan with your preferred lender. After contractors wrap up their work, the loan converts to a standard mortgage and gives you more time to pay it off comfortably.

 

4. Find a Comprehensive Mortgage

If the idea of handling numerous loans makes you worry, you can always find a comprehensive mortgage towards the end of your home-building process. Use it to pay off the smaller loans and only worry about one primary payment per month in addition to any other traditional mortgages. It’s much more budget-friendly to juggle two debts with fixed interest rates than five or six.

 

5. Sell Your Current House

When your new home is nearly move-in ready, sell your current house. The average home sells in six days or less and garners more than the asking price. Use whatever money you have from the sale to pay off a substantial part of your home-building loans or get out of debt completely. It’s automatic financial relief that becomes the light at the end of the tunnel for homeowners worried about taking out so many loans.

 

Consider Financial Steps to Home Building

These are crucial financial steps to building a house, so remember them as you begin your home construction experience. Getting quotes, comparing loans and finding the right financial assistance for your project will make your dream house possible without requiring decades of saving to pay out of pocket.

Categories: News, Strategy


You Might Also Like
Read Full PostRead - Eye Icon
Giving A Personal Touch to Clinical Trials
Innovation
01/03/2018Giving A Personal Touch to Clinical Trials

GlobalCare Clinical Trials brings over 100 years of experience in the clinical trials and home healthcare industries supporting over 400 studies in over 50 countries by effectively delivering high quality and convenient clinical trial services in the home or a

Read Full PostRead - Eye Icon
CREALOGIX’s acquisition of MBA Systems
Finance
19/03/2015CREALOGIX’s acquisition of MBA Systems

CREALOGIX has acquired MBA Systems, a well-established UK fintech brand and leading supplier of innovative web-based solutions and services to the securities and wealth management industries. With this move, CREALOGIX - the Swiss based technology group ranked

Read Full PostRead - Eye Icon
CFO of the Year
Finance
02/02/2016CFO of the Year

Syncsort is one of the largest big-data companies and oldest software companies in the market, drawing on it wealth of experience to provide unique solutions.

Read Full PostRead - Eye Icon
Why Major in Telecommunication Is a Good Idea Today
Strategy
13/02/2024Why Major in Telecommunication Is a Good Idea Today

In an era where communication technology is at the forefront of societal advancement, majoring in telecommunication has become increasingly relevant and appealing.

Read Full PostRead - Eye Icon
Apex Insurance Services
Strategy
13/04/2015Apex Insurance Services

Established in 1957, Apex Insurance Services are a local Insurance Broker for local people, with traditional broking values. We spoke to them about how they offer a fast, reliable face-to-face personal service.

Read Full PostRead - Eye Icon
The Best Innovations for the Best Metalwork
Innovation
08/08/2022The Best Innovations for the Best Metalwork

Working in one of the most demanding markets in the world, Retech has become a global leader in metallurgical processing equipment supply.

Read Full PostRead - Eye Icon
Insuring Longevity Risk
Finance
01/11/2016Insuring Longevity Risk

Founded in 1978 by David Orford, Financial Synergy began life as an actuarial firm in Albert Rd, South Melbourne.

Read Full PostRead - Eye Icon
Phenomenex to be Acquired by Danaher Corporation
M&A
12/10/2016Phenomenex to be Acquired by Danaher Corporation

Phenomenex Inc., a privately held manufacturer and distributor of high-value consumables for the separation sciences, today announced it has signed a definitive agreement to be acquired by Danaher Corporation, a Fortune 150 science and technology company.

Read Full PostRead - Eye Icon
Victory for Vitality
Innovation
05/01/2021Victory for Vitality

The world of pharmaceuticals and healthcare has been around for centuries, but great advancements have been made since the days of Hippocrates. Where once there was guesswork, now there is understanding and the ability to bring meaningful change to people’s



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow