Funding your custom dream home

How much can I spend?

These are the basic ABC's in deciding to proceed with your dream home project.

A. Make a budget

B. Deduct land cost

C. Determine the size and style of the house

D. Find a design/builder that meets YOUR criteria. Make sure you're

compatible; you will be partners for months to come.

E. Determine the cost to build your dream home.

F. Get an appraisal of the value of the finished dream home and land together G. Now you can make your decision. The budget comes first, and here are the ABC's

Making a budget must be your first step, even if you are a billionaire!

Making a budget for housing is simple do not complicate it.

A. The formula is: Cash + Loan = Budget!

B. 1st, add up all your available cash and any assets you want to convert to

cash for your dream home. 2nd, determine your maximum borrowing power.

These two steps determine how much you can spend. It's that simple.

C. 1st step needs no explanation. 2nd is easy also. Contact any mortgage

lender, and a loan officer will look at your credit history, cash available,

your income(s) from all sources, and your total monthly obligations (debt) to

determine the maximum loan amount you will qualify for based on current

interest rates and loan terms (length of loan) available.

D. It makes sense to contact multiple lenders to compare rates and terms. A

2,500 sq. ft. home on either Florida coast costs between $500,000 and

$1.5 million and can be more, which breaks down to $200-$600.00+ sq. ft.

Ask yourself, am I prepared to spend more than I budget? If you're not

prepared to spend more than your budget, reduce your budget by 20% and

set additional funds aside for that “Rainy Day”. Trust me, that day will arrive a

little at a time or in one big shower. Below are some wonderful places to go

dreaming. Stay tuned, there's a lot more to come,

Dik Muller