When most people think of fees and charges relative to a home sale, they are thinking of monies a buyer has to bring to closing. Title fees, lender fees, attorney bills and appraisal charges come to mind immediately.
Allowances are credits the seller advances to the purchaser that are applied against the sales price. This reduces what the buyer must pony up without changing the sales price.
Private mortgage insurance, or PMI, is in essence just like other forms of surety. The insurance company agrees to cover the risk to the lender if the borrower stops making monthly payments.
Meticulous planning of a home-building project is necessary. That, however, is not the end of the matter. Property owners have a larger stake than others in terms of how the construction plays out.
Many people spend years envisioning and imagining the ideal house. Only a fraction of those actually pursue that vision and make it happen. Why? Much goes into this kind of project: money, time, emotion etc.
Buying a house can be stressful enough. Buying land on which to build a house has its own many challenges. Yet these should not inhibit anyone who has the means to pursue a dream…and a little piece of earth to make it all happen.
You have made the exciting – and brave – decision to build a new home. You have a solid design concept with all the financial ducks in a row. Yet this home purchase begins with a land purchase.
Those interested in building a home best follow a certain order to end up with the home purchase they envision and simultaneously avoid surprises. The concept must be clear, i.e. about the configuration, dimensions, aesthetics and offerings of the new dwelling.
Today we begin the first of our six part series on "Building Your Dream Home". Part 1 tackles the 'build vs. buy decision'. Over the next 12 days we'll share key steps in the process as well as share decisions to be made and tasks to be accomplished, from inception to completion.