Folks planning custom homes will spend a good deal of time thinking about how the money for the project will be put to use. It's important to approach the situation with a broad concept of what counts as a financial issue. Your concerns should cover everything from getting the project financed to how certain choices might save you money down the road. Here are three financial issues you should be thinking of when starting a custom house.
Look at a Range of Financing Options
There are more ways to finance a custom home building job than just taking out a mortgage. Many federal programs, for example, offer money for some surprisingly diverse reasons. These include financing from organizations like the Veterans' Administration, Fannie Mae and Freddie Mac, and even the USDA. Meet with the officers at your bank to figure out how what you're eligible for and what they can loan on top of that amount. With a little financial creativity, you may be able to do a lot more.
Give Thought to Long-Term Savings
People doing custom homes have the unique opportunity to work many money-saving long-term solutions into their residences. Take a practical tack toward things like water-saving plumbing fixtures and energy-efficient windows because these items can pay for themselves in the long run. Insulation matters, especially in regions with extreme weather.
You should also think about solutions that can prevent trouble decades from now. For example, a gutter system combined with a French drain along the foundation of the house can keep water from damaging the basement. It also may be wise to re-engineer the property to encourage efficient drainage.
Setting a Budget
Few plans are as likely to go sideways as trying to figure out the money end of a build on the fly. Custom home builders strongly prefer to have the budget outlined clearly at the start of a job.
On your end, that means figuring out how much you can throw at the job and what you're comfortable spending. It's also a smart idea to break your budget down based on the key features you want to see customized. If a beautiful kitchen is a must but you can get by with a less feature-rich bedroom, for example, you should identify the work you want to see done in the kitchen first. Especially if you have to pick and choose what fits into the project, this sort of list can make it easier to get the budget under control.
For more information about custom homes, contact a custom home builder in your area.