When you are making plans for building your dream house locating the correct lot is the main key to success. Selecting the perfect site for your dream house is the most important thing and you have to make right decision. Always make the right choice to lay strong foundation for your dream home, because once selected there is no way to go back. Let’s discuss pros and cons of buying the lot prior before consulting with the builder.
- Superior Terms On Your Loan: Once you purchase the land the next process is getting the loan; you may get a loan that can cover the building costs fully. This is just because you have a commitment once you buy the land. Consulting with bank, loan officer, or attorney before you purchase the land is a good idea.
- You have full Charge: When you have done market research, and found the best place for your new home, ad also purchased land for your home, it’s a good feeling because you are in full charge. You have completed the first step and now the land is yours and you are in the full charge.
- Take Your Time: Now you can make the decision for choosing the right lot and you have enough time to pick up the right builder, workout on all details, and find right type of plans without any type of time sensitivities.
- Upfront Payment Increases: In order to hire a builder and buy a land, it is necessary you have more upfront funds. If you don’t have 25-30% solid equity some banks will not give you construction loans.
- Risky: If you don’t have a worthy lawyer it’s risky sometimes. You want a fair contract with the builder and also good insurance. Always make sure that your builder has valid insurance for worker liability and compensation.
- Property Related Issues: Sometimes lands have physical issues. Always make it clear with septic, water, road access, and sewer. Steeply graded and mountain lands can be a tough job to construct a home, so always choose the land wisely and according to your desired constriction plans.
It is very important to know the pros and cons of buying a lot prior to consulting with the builder. We have all the pros and cons of buying a lot prior to working with a builder, always keep these pros and cons in your mind before you make any decision.…