We’ve worked with many clients through the process of budgeting, and we’re here to help you.

It’s important to create a budget that allows for home construction and considers future maintenance, and that means asking yourself some realistic questions and answering them honestly.

  • How much money are you willing to put into your new home?
  • How much cash do you have available for a down payment?
  • How much can you afford in monthly payments to cover the amount you need to borrow?
  • How much will the property taxes be on your finished home and land?
  • How much homeowner’s insurance will you need to cover your investment?
  • How much can you set aside for routine home maintenance and upkeep or non-covered emergencies?

If you require a loan to complete your home project, you’ll want to calculate your debt-to-income (DTI) ratio. This takes your monthly financial obligations like house payment, car loan, charge cards, etc. (not utilities, food, entertainment) and divides the total by your monthly income. The final number should not exceed 33-36 percent of the cost of the home you are planning to build. Your monthly house payment should not exceed 25 percent of your stable monthly income.

At Southern Timbercraft we’re experienced at helping you balance what you want and what you can afford. Give us a call and let us help make the budgeting process a little less scary.

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