You have been saving up for years, and you are finally ready to take the plunge and invest in residential property – but not just any property. You want to take a lead role in creating your dream home, so you are planning to have it built up from scratch. If this the path that you intend to follow, you probably have a few questions running through your mind. Below, you will find a list of answers to some of the most frequently asked questions regarding the process of building a house.
How can I be sure that I hire the correct contractors for the job?
First and foremost, be sure to chat to those friends and family members who have already been through the process of building a house for their tips and recommendations. Next, always be sure to compare your options, paying close attention to the small details that set each construction company apart. Finally, take the time to meet the builders in person before making a final decision regarding which company to hire. You will want to find a team that you connect with and with whom you communicate effectively.
What financing options are available when building a house?
Most people will immediately approach the bank for a loan when they are planning to build their dream home from scratch. While this option works for some, it might not be a viable route for others. Another great alternative to consider is getting in touch with a ‘hard money’ lender, often referred to as a non-banking lender specializing in new construction loans.
These companies are private lenders and usually promise to grant you your requested loan within days of receiving your application, with no extra charge for a draw. In addition, these loans are often secured, short-term loans that enable you to kick-start the building process as soon as you are ready to proceed.
How long does it take to build a house?
This will depend on many factors, such as the size of the property and the contractors you have chosen to hire. Having said that, generally, once your plans have been approved, and all admin has been completed, you can expect the building process to take between six – 10 months. According to the U.S. Census Bureau’s 2018 Survey of Construction, the average house takes approximately 7.7 months to build, including a month for permits and building authorization.
It is important to note that building a house can often feel like an extra job. This is because you will have many decisions to make and will be working closely with the construction company every step of the way. Therefore, if you have many other time-consuming commitments at the moment, it might be best to put off the build until such a time when your life is slightly less stressful.
Ultimately, the process of building a new home is as rewarding as it is demanding. However, you can rest assured that the final result will prove to have been well worth the time, money, and effort! Enjoy.
