Don’t be overwhelmed by just starting your real estate, construction, and lending search. It’s like the chicken and egg story, which comes first? If you talk to any one of the companies, they should be able to walk you through the process.
Really, the best place to start is with a lender to know what you can qualify for. Whether you are looking to buy real estate, build or remodel your home, or both buying real estate and building a home, they will be able to tell you how much you can spend. Too many times, people start to look at property that they can’t quality for. Or want to build that dream home that will cost more than they can get money approved for. Some lenders can walk you through the pre-construction process and then turn that into your mortgage. If you don’t have a lender, your real estate agent or builder can assist you.
If you happen to start with a real estate agent to find that lot, land, farm or whatever, they will ask you how much you want to spend. Have you spoken to a lender if you are financing? Do you have a pre-qualification letter? The pre-qualification letter will indicate you have been pre-approved up to a certain amount to spend. If you are paying cash – no worries, just start looking for the dream land. Some agents will go ahead and start showing you properties and then when the time comes will assist you in getting with the lender to purchase the property. Some agents will not even show you a property until you have the letter in hand, if you are financing.
If you start with the builder, basically the same scenario as with a real estate agent applies. They will need to know what you want to build or remodel and how you will be paying for it. Normally, the first question a builder gets is how much do you charge a square foot? The builder will give you their per square foot number and you can calculate it to the size of home you want to build. For instance, you want to build a 2200 SF home and the builders base rate is $125 per square foot, the base price of the home will be $275,000. Remodels are a case by case scenario, depending on what needs to be done. In your initial meeting, you might discover there is no way you can go with a custom builder and must look at other options or downsize your plans. If you see this is going to be a good fit, and need to get a loan, the builder will recommend some lenders they have worked with. Or you can use your own lender if you have one.
So as you can see, the realtor, builder, and lender all work together. They will assist each other in making your buying, building, and lending process as smooth as they can. Don’t get overwhelmed with the process. If you know what you can qualify for, know where you want to live, and know what you want to build, it will be smooth sailing. If you don’t know any of these things, any one of these professionals will assist you step by step – just ask.
For all Your Real Estate and Building needs or questions, call Debbie at 830-833-4249 or 713-818-6658.