So what is your dream house? Maybe you would like to build a stately colonial or an executive style rancher. Alternatively, maybe your dream house is a timber frame house or a classic farmhouse. No matter the kind of house you intend to build in 2018, you need to interview and met many potential builders. However, that is not all; there are many other things, which you will need to think about if you want to get your dream house. They have been discussed in detail below.
Conduct Research into the Home You Want
Before you can find a contractor to build your dream house, you will need to conduct extensive research. Take as many photos of the house you desire as possible. If you have a friend with a house similar to the one you want, take photos of it.
Besides that, you need to use the internet. Find as many homes with a similar look to your vision and download them. With these photos, you can now visit the builder. Ask him or her to prepare a possible sketch of the kind of house you would like. Take time and go over the sketches with him until it fits the bill.
Get the Funds House
After you have finally zeroed in on the kind of house you would like, you will need to ramp up your savings to ensure you have the money to actualize your dream. The biggest hurdle to a dream house is the down payment. In fact, three-quarters of millennials say it is the biggest obstacle to them and their dream house.
However, there are numerous ways for you to pay less than the usual 20% down payment needed for a house. Besides that, you use some savings strategies to ensure you boost your reserves. Here are a few ways to make your home ownership a reality.
- Make Use of Low Down Payment Programs
There are numerous mortgage programs, which can assist you to pay as little as 6% for your down payment. In some instance, this will mean that you pay extra on your monthly mortgage. Always weigh the pros and cons before using any program.
One of the most common options is FHA loans, which are guaranteed federally. You will need to make just a 3.5% down payment on the home’s price. Even if your credit score is not perfect, you can still be approved with good interest rates. However, you will need to have mortgage insurance premium. The policy ensures that you are protected in case you are unable to repay the loan. It will also add to the upfront cost and the monthly payments you make.
- Check if you qualify for housing discounts
There are numerous programs available if you meet certain requirements. If you live in a rural area, the US Department of Agriculture has loans that require a 0% down payment if you meet certain criteria.
For police officers, teachers, firefighters, and EMTs, there is a special 50% discount for them offered through the Department of Housing and Urban Development Good Neighbor Next Door Program. To qualify, you need to purchase a home in a special zone and live there for about three years.
For members of the military or those that have served in the military, there is a loan offered by the Department of Veteran Affairs. You do not need mortgage insurance or any down payment. Besides that, it has low closing costs.
- Consider refinancing your Student loans
One way you can use to free up money for the down payment is to refinance any student loans you have. This will replace the previous loan with a new one at a lower interest rate. In most cases, you will need to have credit score minimum of at least 700. Besides that, you will need to have a full-time job and a stable income. However, refinancing federal student loans means you will lose things such as forgiveness and income-driven repayments.
- Stash some of your windfalls
If you are expecting a bonus or a tax refund soon, commit to directing some of it to your down payment. Set aside at least half of it, to pay your debts the rest can be divided equally into your savings and fun. However, if you have any pending high-interest credit card debt, pay it off so that you do not lose money to interest while saving for a house.
- Use a CD to Grow your Money
If you have any money saved up, try to grow it. Investing in the stock market may not be a wise choice for investing in the short term. However, your funds do not need to lie idle in a savings account that offers low interest.
A CD or certificate of Deposit is a great way to grow your savings. It locks up your money for six months to five years at a higher interest rate. If you deposit your money for long periods such as five years, you could earn as much as 2.05% interest. Some C accounts that hold your money for one year will earn as much as 1.2%, which is more than what most savings accounts offer.
Start Planning for the Interior Décor
A home is not complete if the interior does not much up to your dream house. Fortunately, for your, you can find everything you need for your homes décor here. No matter how exotic your tastes may be, they will have something that you can use.
Make Your Home Energy Efficient
After constructing your home, you will still need to make monthly payments. When you take into account the monthly energy bills, these costs can rise quickly. Luckily, energy efficiency technology has come a long way. However, initial installation costs remain a major barrier.
That is why you should consider using the PACE home improvement financing program. The company offers you 100% financing for your energy efficiency installations. With the money you save on your energy bills, you will be able to make monthly mortgage payments on time pay back the Ygrene financing loan without any difficulty.
Owning your dream home should not seem like such a challenge, with all the financing options for your home and for energy efficiency, you should get started today. Your dream home can become a reality in 2018.