What NOT to Do when Building Your Own Home
This issue of Build Your Own Home will focus on a few items that you really don’t want to do when you are building your own home. They are not directly related to building your home but could definitely affect the outcome.
These items are often not considered, but once you read them it will be pretty obvious that common sense should prevail during home construction. I have just made a list below, with an explanation.
All the best,
- Never Ever get a Divorce when you are building your own home. You may be tempted to…. but don’t do it. House building is a good test of marital metal. (If you know what I mean.)
It will affect your credit score and could make it very difficult to close. You could wind up with no place to live, or worse, a pile of debt.
- Schedule any elective surgery.
Most people underestimate the recovery time of even simple surgery. You don’t need the pressure of house building on your back when you are trying to get out of the bed. Any kind of surgery is stress on the body and you need peace and quiet during recovery. If you have a choice in the matter, schedule your surgery after final closing on your mortgage. God forbid that something unforeseen should occur and leave your family in a bad financial situation, with an unfinished house that they can’t sell, or live in. You may not have a choice, but if you do…. wait. You need to be 100% during the home building process.
- Buy anything on credit that is not paid for immediately.
Because it will affect your credit score! I know it’s tempting during the building process to put in that new 60 inch TV, or get that new car that has been drastically reduced. But don’t do it! RESIST! Keep your credit score as perfect as possible with as little debt as possible. Who knows…a great new idea for your home may come up during the construction process and you may have to go back to the bank for a little more credit. Guess what? They will pull another credit report and see what your debt picture looks like. DO NOT consign for any loans during this period and do not apply for any new credit cards. All of these things affect your credit score.
Think carefully about ANY new debt during this period. (We cancelled a planned vacation during this time to give ourselves more breathing room financially.)
You want to position yourself (financially) to close on your home and come out as debt free as possible. Many people emerge from house building in much better shape financially than when they started because they control the checkbook and they are shedding debt along the way. Any cost cutting measures that you use (like doing the interior painting yourself) can be translated into cutting out pesky credit card debt. You have a pre-planned budget for interior painting…how you use that money is up to you!
All of these details are especially important to you if you don’t have a single closing loan. I talk about this on the Construction Loan page.
- Don’t Quit or change your job during home construction.
Quitting, or changing your job makes lenders nervous. They approved you because you appeared stable. Will the new job work out? Who knows? It looks better to you, but how will the lenders view the move? The interest rate that you will have to live with depends upon several risk factors. Your job being one…
- Don’t plan a vacation away during home construction unless the whole site is shut down and locked up.
Because a dozen little things, (and some big things) can come up during the building process.
Please understand that building your own home will require your dedicated attention for a while, but please believe me, it’s worth it!
This is a time to keep your eye on the ball, and if you’re like me, you want to!
Now I know that your wife / husband and children want to have their normal vacation, but you need them to go without you, just this once.
If it’s Christmas, or another big holiday, the contractors take off anyway. Relax during this time. If the contractors are working, then you’re working! Got it?
I know most of the items listed above are just plain common sense, but if you have never built your own home you are not normally thinking this way. That is why I do these free newsletters and I hope that they really help you! Give and it shall be given to you….
If you want information about Construction Loans or Home Loans go to our
Home Loan & Construction Loan Page.
If you want more information about building your own home go to our
Building Knowledge Center.
If you want information on hiring qualified contractor go to our
Building Contractor Page.