Where to Start
More and more families are deciding to have a home built on property
they own or intend to purchase. The challenge is where to start.
If you are at this web site, you probably have decided to educate
yourself about the process of having a home built before moving
ahead. That's good, because as some wise person somewhere once
said "knowledge is the key to making mistakes with a high
level of confidence."
though, learning before building does have several advantages.
By understanding the process you can save time and money. You
save time by focusing only on service providers who can meet your
needs. You save money by having a clear vision of what you really
want and can afford.
the Rough Economics
Before you start looking for property and planning your home,
it is good to have an idea just what you can and want to spend.
A good rule of thumb here is that what you really want, you can't
afford, but don't let that stop you. The best way to begin is
by determining approximately how much you can afford to pay each
month for your property and new home.
there's a pretty simple formula for coming up with this number.
It's the Federal Housing Administration (FHA) formula that many
mortgage lenders use. The FHA has found that most people can afford
to budget 29% of their gross monthly income to housing expenses,
depending on total debt. Buyers with no debt can budget as much
as 41% of monthly income to housing. The two charts which follow
can help you approximate an acceptable cost for the property and