If you've decided to have a custom home built rather than buying one that had already been lived in, then you're probably aware that this process won't be cheap. The best builders know what their work is worth. But while it's worth it to pay for a home that is exactly what you want, there's no reason to overpay, either! Here are four ways to save when having a custom home built.
Put some things on a 0% credit card.
If you can find and apply for a credit card that has a 0% interest rate for a year, do so. This way, when surprise costs come up -- like stone you need to buy for a mantel or a new toilet seat -- you can put them on the credit card rather than bundling them into the building costs. You won't have to pay interest on those expenses like you would if you were to finance them directly through the builder.
Set a budget.
At the very beginning of the building process, sit down with your designer and builder, and decide what a reasonable budget would be for the home. As you go through the building process, items are going to pop up that add to the original estimate. Only allow yourself to say "yes" if those items fit into the budget. Otherwise, you're just going to have to say "no" when the builders offer an upgraded fireplace or stove!
Don't sell your own home just yet.
Builders rarely finish building by the original deadline. Various problems can hold up the work. Perhaps the bank does not get back to them in time, or maybe a change you requested to the floor plan requires a bit of backtracking. In any case, don't sell your current home too quickly, or you will have to move into an apartment for a few months until your new home is finished -- and the cost of that can really add up.
Shop around for a mortgage.
When you take out a mortgage on a new build, it's common to just go with whichever bank the builder suggests first. However, you may save a lot by shopping around a little. Get offers from a few banks, and accept the one with the lowest rate. If rates are good, make sure you seize a loan before they go up!
With the tips above, you will save yourself a bundle when building your own custom home. Contact your local custom home builder for more information.