No-Nonsense Tips That Will Make Building Your First Home a Success

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When you decide to build your first home, you’re probably feeling excited about the possibilities, but all these endless possibilities might make you feel overwhelmed. Where do you begin? Building a home is a positive and rewarding experience as long as you’re prepared and take each step in stride.

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Budget and Financing

If you’re at the beginning of this process, the first thing you have to do is set a budget. Of course you will already have ideas about what you want your home to be like, but a budget has to come before choosing the home plan, finishes, and everything else - not the other way around. Setting a realistic budget from the beginning will also help you prioritize which features matter to you the most.

Once you have an idea of the budget you’re working with, the next step is to secure financing. Just like buying a home, building your home will require a down payment and a loan that covers the remainder of what you owe. PennyMac Loans details the range of loans available to home buyers so you can choose the best option for your finances and needs. Many first time home buyers (and builders) worry about whether their credit score is good enough to qualify for a loan. The good news for those with lower scores is that the FHA has lowered its minimum credit score requirement to 500.

Just be aware that you can qualify for an FHA loan with a score of 500, but a score that’s slightly higher will allow you to access the FHA’s most affordable options. In addition to FHA loans, some home buyers may be eligible for other programs that help with down payments, such as rural development loans through the USDA or VA loans for veterans.

Preparing to Move

With financing taken care of, the next big piece of the process is the actual move. To make sure you have a smooth move with as few issues as possible, start preparing for this step early on - even before your home is built.

Building a home gives you the opportunity to take your time packing. Start doing this little by little, and as you do, declutter by sorting out items that won’t work in your new home or that you haven’t used in a long time. There’s no need to pack and move things you aren’t going to keep!

Sometimes it can be hard to part with things from the past. In this case, it may help to rent a storage unit such as those offered at Hanover Mini Storage so you have somewhere to keep them temporarily. Be sure to price out options for this and other moving-related expenses so you can work them into your budget.

Working With Your Builder

Another potential stressor that you can eliminate early is worry about working with a builder. The Spruce lays out the general process, which starts with choosing a builder such as Burkentine Builders. They’ll help you create a house plan and assemble a team of professionals who will make it happen. One of our top tips for keeping this easy breezy is to stay in constant communication with your team.

As you work closely with your builder, you can expect to make a lot of decisions regarding what you want, which makes the process that much more exciting knowing you’re getting the dream home you’ve always imagined. Making decisions about fixtures and finishes is a lot of fun, but some homeowners end up with what Apartment Therapy calls “decision fatigue.” Remember, your builder is a team member, and they’re more than happy to provide you with some sound advice and perhaps provide you with an option to choose predetermined categories colors, styles, finishes, and more.

Above all, the best tip for making this a positive experience is to have fun! Something as simple as having a moving day music playlist can ramp up the excitement of this joyful day of new beginnings. Taking your dream home from a concept to construction takes time. You may as well make the most of it and enjoy the journey to creating the place you’ll call home!

The pandemic forced millions into retirement, causing many to rethink their financial priorities and planning. Our experts at Bankrate created a guide that walks seniors through the financial benefits and what to consider when downsizing their homes, especially during the current seller’s market. They also use graphics and calculators to provide information on smaller mortgage payments and income planning.

Click here to visit Bankrate: https://www.bankrate.com/personal-finance/retirees-guide-to-downsizing/