The Federal Housing Administration (FHA) loan is often referred to as a first-time homebuyers' loan,…
Five Ways to Reduce the Cost of Building a New Home
Getting a home custom built for you and your family is an exciting idea. You can decide how you want your new house to look and figure out the type of layout you want. However, the cost can be very pricey, especially if you do not do research beforehand. To save on costs when building a new home, follow these five tips:
Use the Right Contractor
Shop around for the right building contractor before starting your construction project. The right contractor will be well versed in material and labor costs and will be able to work within your budget to deliver your project in time. Conversely, a bad contractor will have a poor idea of costs and may end up causing you to go over your budget and drive up your construction costs.
Find the Right Construction Loan
The interest you pay on your construction loan may drive up your construction costs, so ensure that you shop around for the best rates. While you may want to begin building your new home as soon as possible, visit several lenders before signing on the dotted line. Also, ensure that you read the fine print so you do not end up paying more in terms of penalties and other hidden costs.
Shop around for the Best Deal
Take your time and do some comparison shopping before purchasing fittings and construction materials. You may have to drive a bit further away from the city to get a great deal. Find out if you can use coupons or get discounts on items you will use for your construction to enjoy even greater savings.
Do Your Shopping in Advance
Shop for building materials well in advance to avoid having to pay a premium for items that need to be installed instantly. Have materials on hand long before they are required to save money and avoid having to put your construction on hold while you search for the items that are needed.
Pitch in on the Work
If you have experience with construction, try and pitch in on some of the work to save on labor costs. For instance, if you are handy with a brush, do all the painting yourself. If you are good with installation, ask your contractor if you can put some of the fittings in yourself to get even greater savings.
You can still get the dream home you want and save some money at the same time. It is crucial that you shop around for contractors and loans to find the best deal, as well as get supplies in advance. The extra money you save can be reserved for any projects that go over budget, furnishing your new home, or throwing a housewarming party.