Realistic Budget
Having the Right Mindset for Building Your New Home
Step 4 –Realistic Budget
Your bank has told you what you qualify for and you know how much extra you may want to spend. This is your budget. Attempt to stay as close to your budget as possible through the
build as it is inevitable that something will come up that cost you more money. This could be change orders, running into problems, or design changes. No one wants to spend more money so the more time you spend up front on design and planning could save you money down the road and keep your budget on target. Keep in mind, some people have a hard time visualizing a one dimensional plan and it is typical once you see your house framed you see things that you would like to add, delete, and move. Understand change orders are always very costly so you will be better prepared for this if you have funds built into your construction loan for such changes and/or emergencies. Having more money in your budget than you spend is a great thing. Any money that you do not need for your project you simply don't take out and it won't go into your permanent financing.