Is This the Year You Decide to Build Your Dream Home?
The decision to “go for it” and build your own semi-custom or full custom home is that you want to avoid buying a newly completed “production house” from a developer that is located on a postage stamp sized small lot with boundaries that are but 15’ -20’ feet apart from neighboring homes. Neither do you want to be “held captive” to the dictates of a Community Home Owner Association Regime unless of course you prefer to purchase a lot and build your home within a gated Planned Development with shared recreational facilities AND a monthly paid HOA fee in addition to your mortgage payment. Unless you already own a lot or land on which to build, locating a suitable lot is a matter of personal choice AND of course your budget. We can build your new home on any buildable lot/land of your choosing.
Let’s talk about your budget… in order for our Company (or any home builder) to work with your “dream” in an effective manner we need to know what your budget is. For example, If your budget is $350,000 don’t “lie” and advise your Builder that it is several thousands of dollars less!
- Is your budget based on reality or on wishful thinking? Maybe you are one of the fortunate few who has amassed, whether through savings, inheritance or a lottery windfall, a significant six figure CASH amount to cover your project cost. If not, then you are among the 95% who will be dependent on securing a Construction Loan from a Bank or Credit Union.
- Have you obtained an APPROVAL for a Construction Loan? If so, for what amount? Whatever that amount is, when added to your available cash savings, it will equal your budget.
Not yet approved for a Construction Loan? Until you have that approval, your “dream” will remain just a dream and at that point you are simply wasting your time looking for lots or considering any house that interests you and your family. So, make contact with your present Bank or Credit Union and apply for a Construction Loan Approval. OR… contact our Preferred Lender at South Carolina Federal Credit Union who are offering up to 95% of the cost of construction, PLUS the cost of lot if needed. Reach out to Corie Seay Davis at 843-847-1896 / office 843-569-5049 / email: firstname.lastname@example.org.
If you already own a lot or land on which to build and it is “free and clear” of existing mortgages, liens or Title issues, your Construction Lender will require an Appraisal of current value. Whatever that value is could substantially reduce the amount of your down payment.
If you need to find a lot on which to build then while that purchase cost can be included in your construction loan please bear in mind that your total loan amount PLUS cash that you can provide will be split between lot cost, and site preparation…whatever remains will be the budget for the house.
At this point, please look for two KEY articles in our BLOG section:
The point that I am trying to make is simple. Maybe you have a Lender approval for say $300,000 plus available cash of $15,000. Let’s assume that you DO NOT already have an owned lot on which to build. DO NOT LOOK FOR HOMES THAT WILL COST $300,000 TO BUILD!! Out of your $315,000 budget you will have around $8,700 in initial fees to cover costs of Surveys, Soil Tests, Structural Engineer’s Fees and Plan costs. Add to that cost of lot at $XXXX PLUS costs that are addressed in our article LOT PURCHASING and you may well find that you have less than $230,000 to cover the actual house construction cost.
Construction Management Services of SC LLC is not only a superior class of home Builder. We are first and foremost a “reality based educational Counselor”. The end result of our team-based collaboration with YOU and your family is a home that we can both be proud of and a home that you can afford! We will be with your every step of the way to ensure a stress-free experience and we will do the “heavy lifting”!!
Be sure to contact me by email: Richard @cmssc.com or by ‘phone 843-364-5413