This article provides tips on budgeting for your custom home.
Are you a potential homeowner contemplating building your ideal custom home? If so, you have most likely spent countless hours daydreaming about the incredible features you plan to include. Although it’s natural to get excited about the decision to build a custom home, being realistic about your budget moving forward is crucial. This article provides tips on budgeting for your custom home.
A Pre-Qualification Loan is Critical
Even though getting pre-qualified for a loan is the first step in the mortgage process, many people are reluctant to pre-qualify before visiting custom home builders. If you don’t understand what you can afford, you risk falling in love with a house that is out of your budget. If you want to set yourself up for success, meet with a lender or bank who can analyze your finances.
Unlike pre-approval, pre-qualification doesn’t require an analysis of your credit report. After considering your debt, income, and assets, a lender or banker can estimate the loan amount you may expect to get approved for when budgeting for your custom home.
Research Homes in Your Desired Area
The cost of building your custom home will depend on different factors, including design, size, and location. If you want to receive a ballpark of how much constructing a home will cost in one of your desired locations, drive around and complete some research on the cost of similar real estate in the area. Remember, you must factor in the price of the home and land regarding a custom home design when you are budgeting for your custom home. Explore our sample floor plans and pricing for a Robin Ford home.
Prepared to Be Flexible with Your Budget
While you may have received an accurate estimate from a lender during the pre-qualification process, it’s vital to remember that this amount is not certain. The final approval amount depends on your loan application, mortgage options, and credit score.
Prepare to be flexible in case you don’t qualify for the amount you were expecting. Custom home building takes almost 6-7 months, depending on the project scope and season. Overall, it’s ideal to prioritize the features that matter the most to you within your design early on to reduce indecision and ensure a swift 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. Call 410-239-8850 or contact us here to start experiencing The Robin Ford Difference today. You can also connect with us on X, Pinterest, and LinkedIn.