First steps??? Please help?

Question

My wife and I are going to build a new house, but need to know the first steps we should take as far as permits, selling our house, etc. etc. is concerned.

What do we do first? Sell the house? Get the permits? Get the builder??

THANKS!!

Already have the lot. Also have a POTENTIAL builder as well as some subcontracters in the family who will do work for VERY cheap.

Have a septic company owner in the family who will do it for cost, as well as get the permits pushed through.

Also the location will be on a family farm which will be 13 acres deeded to my name in order to use as collateral. So should I try to sell the house asap, move in with family, get the house built??

Answer 1

You have the lot, but is it a lot that meets the town or city requirements for a building lot? I'd check that out first if you haven't already.

Will you have city water or have to dig a well? Same question for sewage? These two answers lead to whether or not you have to do a test for the septic system and whether there's sufficient room on the lot to dig a well that won't be contaminated by either your septic or your neighbors septic system.

So if you have a lot that is OK to build on according to your local ordinances (check with ciyt/town hall) and you have city/town water and sewage, choose a house plan and line up your financing and contractors. More on this in a minute.

If you have a buildable lot according to the town/city ordinances but need to put in water and septic, I suspect you'll need to have a local commission approve plans and perhaps see test results for the specific septic system location and design. The septic design will depend on the number of bedrooms in the house so you'd better have the house plans already selected or at least know what you want to build.

They'll also want to know placement of the well location specifically with regard to your septic and your neighbors (they should have the neighbors data on hand from the neighbor's permitting process).

Don't sell your house if you can find a bank or mortgage company who will give you a construction loan using your current house as collateral. Using the construction loan, the bank will dole out money as work progresses on the new house. When the new house is done, the bank has an interest (lean) on both, so then you sell the old one and move into the new one. The old mortgage gets paid off and the construction loan gets converted to a new mortgage and you're in.

This is way simplified. Find a general contractor and let him/her do all this for you. That's what they get paid for.

Answer 2

There are construction loans where payments are not due until completion, so selling your home is not required first.

Get a good general contractor/builder who knows that counties/cities permit process and has a good working relationship with the city government officials you will be dealing with. You want someone with the ability to be diplomatic......not a shoot and ask questions later type, or a contractor the city has had problems with in the past.

Your county or city may even have a "owner builder" packet to assist you. Call the building department and ask if they have any resources that may help you through their process.

Good Luck

OBA

Answer 3

Location is #1. Find out where you want to live. Buy a lot there. Decide what kind of house you want: size, style, cost. If you are going to spend more than $500,000, hire an architect who has experience designing and building homes.

Then look for a builder who can build the home you want within your budget. Since you are inexperienced, you will not be able to keep a greedy builder honest.

Answer 4

LMSUIAO I would love to know the outcome if he had christened you Jehosephat LOL