I want to buy land and build a house - where do I start? I already know where I want to build but this is new?

Question

What is the process for buying land and building your own house?

Answer 1

I would get ahold of a general contractor who does new builds and find out how much the type of house you want is going to cost. I would also find out how much the land I want is going to cost. Then I would go to a lender and find out if I can borrow the amount it costs to buy the land and build the house.

If you buy the land (assuming you're not paying cash), you'll have to get a regular mortgage - as opposed to a construction loan. That means that the month after your loan funds and you own the land, you start paying monthly mortgage payments on it.

For the construction cost, you can get a construction loan. This works like a bank account, where you draw on the loan amount, increasing your balance with each draw. Many construction loans do not require you to make payments during construction for up to 6 months or a year. When construction is complete, the amount of the loan rolls over into a regular mortgage.

As far as the construction of the house goes, the general contractor will know about the process and will cause milestones to be met. This includes the submission of plans to the county, obtaining permits, and generally everything that goes into building a house. You may need to hire an architect to draw up the plans. Or, some builders have in-house designers who can draw up the plans for you.

And, unless you have some fairly custom features you want added to the design of the home, it's advantageous to have the builder draw up the plans. They will charge you less than an architect and they know how much a certain feature is going to cost. An architect might design some very cool feature into the plans, not realizing that it might cost tens of thousands of dollars for the builder to implement.

Answer 2

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I want to buy land and build a house - where do I start? I already know where I want to build but this is new?
What is the process for buying land and building your own house?

Answer 3

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If it's your first home or there's a move in the foreseeable future, go with an already built home. Building is nerve racking and a giant hassle. Worth it if it's going to be the home you grow old in, not worth it for a place you'll move from in a few years. My husband and I have just moved into the house that we've built. Started plans in June 2007, LOL. It's a very specialised custom place, though, so if you bought generic plans and weather or other problems didn't interfere, it might not take more than 3-5 months. Pro's of an already built place: - No dealing with contractors - No annoyed neighbors - Everythings already done for you - Less time waiting to move in Con's of an already built place: - You don't get much customization - The old owners may not be entirely honest, and home inspections don't pick up on everything - If it's part of a housing tract, generally it's of very poor quality and you may get more than you bargained for with future repairs because it's cheaply built and falls apart easily Pro's of a custom/building your own: - You get to customize more - Sometimes cheaper - Pride in the journey and seeing a project from start to finish - Quality control and getting to know contractors, who (if they're good ones) will usually try to get you the best quality and the best fit for your life - Better energy efficiency in customs, as a general rule Con's of custom/building: - Contractors aren't always honest, reliable or on time - Can get delayed by bad weather and unexpected land features, among other things - Can be costly (depending on the level of customisation you want, the size of the home and what quality contractors you use, and of course the initial cost of the land + area taxes) - Waiting, waiting, waiting

Answer 4

What I suggest is first things first. You need to talk with several lenders in your area to determine #1 what their programs are and how they might best suit your financial situation, 2nd to be qualified by the lender so you know exactly how much you can spend.

Next I would make a list of what you "have to have" in your new house and a list of "would like to have" in your new home.

Next talk to family, friends co workers or visit some open houses and talk with agents about the area and builders. When you find one that seem knowledgeable, listens and you are comfortable with, then ask them to help you with your project. That way you have someone looking after your best interests. And the best part is their services are FREE!

Next give them the list you made !

Happy Hunting!

Answer 5

This is an interesting question, and one that confused me for a very long time.

Answer 6

WELL MY ? IS WHERE TO YOU WANT TO BUY.