Organize Your Finances

Building your dream home doesn’t necessarily mean it’s more expensive then buying a new build or existing home. It’s possible to build a small custom home. Sourcing out all the materials one at a time instead of bulk can raise the price of the home. Deciding on where to want to buy land, the quality and design you choose will impact the final price.

To finance your dream home, it requires you to get a construction loan, which not all lenders offer. If you do not own land, you will have to finance the land and then the construction. Typically you would have two closings at the end of settlement with two different closing fees.

To qualify for a construction loan, lenders recommend you have excellent credit and a down payment of 20% to 25%. Lenders typically require more cash reserves for borrowers who plan on building a custom home in case there are any extra glitches and funds that extend the construction time frame.


Interview Architects & Builders

If you already have an idea of what type of home you would like built, you can begin searching for architects and builders in your area who design similar residences. In Maryland, the top custom home builders are Zander Homes, Classic Homes, Korey Homes, Ryan Homes, Mueller Homes, Battaglia Homes, and Keystone Custom Homes. Some builders recommend and architect, while others are able to design/build the entire project. No matter which you choose, it’s always important to interview multiple architects and builders and view examples of their work to see which is the best fit for you and your family.

Finding The Right Land

If you do not own land yet, most of the builders or architects will be able to lead you to a Real Estate Agent who can help. It’s important that the design of your home matches the land you choose since some communities won’t allow you to build a home that does not match homes in that area.

Planning your home from the roof to the foundation along with all the items in between can save you time and money when building your dream home. It also can reduce the risk of the possibility that materials won’t be available or extra cost for materials.

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