What are the first steps toward buying a new build?

Question

I'm wanting to have a new house built to my specifications, but I don't know where to start. should I contact the builder first to figure out how much I would need or should I wait until I get preapproved. I want to wait as long as possible to contact the bank so I'll have more money to put down. How long does it usually take to build a house?

Answer 1

You need to get some idea of how much house you can afford. You don't need to get pre-approved, but you do need to know how much you can spend.

You should probably start with an architect to design your house. Then you can take your plans to various builders and receive quotations on getting your home built.

Then you can go to the bank for a construction loan (you make draws on the loan while construction is going on), which you refinance into a conventional mortgage once construction is complete.

How long is a big guess. It depends on a ton of factors, one big one is how busy your builder is and how motivated you are to have the builder working on your house.

Answer 2

The first thing you need to do is contact a builder(s) of your choice to get some notion of cost involved to build a house to your specifications. There is no problem contacting a bank in advance to discuss your options. You can always reduce the amount you ask to borrow by having a larger downpayment.

Without any idea of what type of house you have in mind, it's impossible to tell you how long it will take to build. Generally speaking, however, the more 'basic' a house is, the shorter the build time. If you end up with a lot of very custom features and amenities, it will take considerably longer.