The housing market continues to be competitive. With five, six and seven good offers going for one home, homebuyers are being turned away and have even fewer options to choose from. Will it get better for buyers? Leading real estate agents of the Indianapolis market predict no, at least for the remainder of the year.
Instead of fighting, stressing and overpaying for a home that meets ‘most’ of your needs, put the ball in your court and consider building a custom home while the market’s hot.
Here’s what you need to know whether you’re a first-time custom homebuilder or an experienced veteran.
Determine how much you can spend
Before getting started, you should have an idea of how much you can spend on your new home and land. When setting your budget, you should identify how you will organize your financing and understand how the decisions you make can affect your new home’s price and value. From there, you can schedule an appointment with a trusted lender or a financial institution of your choice to get a second opinion and discuss home insurance, loan options and payment assistance programs. If needed, your custom home builder can assist with you this important step and direct you to preferred lenders if needed.
Discuss mortgage qualifications
Knowing your budget, you can discuss with a mortgage broker what your rough estimate of monthly costs will be based on your income, credit report and history. Your monthly costs will include property taxes, home insurance, and in some cases, private mortgage insurance. This preliminary work will set up all the information you need to apply for the best mortgage loan.
Choose a homebuilder
Now that you know your budget, you might be shopping around for a custom home builder that serves your area and best meets your needs and style. During your consultation, your custom homebuilder will ask the style of home you’re looking for, your priorities, if you have a location in mind or if you need help finding one. The more details you give your homebuilder, the better understanding of your project they’ll have to prepare for the next steps. It may be a good idea to think through these details prior to your consultation.
Planning your dream home
After your initial consultation with your custom home builder, the fun part begins! In most cases, your builder will connect you with a trusted partner to help you map out the design of your home. What type of floor plan do you envision? How many rooms do you want? Do you want a master suite? These are a few of the questions you’ll uncover in your design consultation plus so much more. The best part is— every inch will be inspired by you and designed to meet your lifestyle!
Pricing and closing the loan
Once you’ve determined the design of your home, you’ll receive an estimate of final costs and a budget for fixtures and appliances. In most cases, your custom homebuilder will walk you through this process and connect you with trusted partners who can take care of your custom cabinetry needs, bathroom plumbing and everything else you desire. Now that you know your actual pricing, your broker will provide you with official mortgage terms including monthly payments and interest rate. Your final step will be closing your loan, signing the contract and letting the groundbreaking begin!
As your custom home is being built, you can sit back, relax and enjoy the view of the home being built for you! All the better, you’ll be able to shop for your final touches and décor during this time instead of fighting for a home that’s already built and doesn’t meet your every need. If you’re getting dragged down by the home-buying process, you have better options, and at Bontrager Custom Homes, we can help. Are you interested in reading more about the final phases of custom homebuilding? CLICK HERE.
For more information about Indianapolis-based Bontrager Custom Homes, click here.