There’s a chicken and there’s the egg. The age-old debate is which comes first. So, do you create house plans before finding the perfect place to build, or is it better to find the land first?
Most financial advisors suggest purchasing your land as soon as you’ve identified the right place to locate your home. “Right” means considering many factors, so you’ll want to review this downloadable guide before you settle on a piece of property just so you won’t forget to ask about anything vitally important to building your future home there.
Keep in mind that no matter where you buy property, it’s not uncommon for closing to take 90 days or longer. Speaking of chickens, you may not want to count them before they hatch. Don’t make major land improvement investments until you feel very confident the property is where you will soon live.
When you are ready to obtain a construction loan for your new custom home building project, lending institutions will look more favorably on your application if you have a piece of property that is paid for or has considerable equity. Just this simple step could make a difference in whether you qualify for the loan you need to build the forever home you desire.