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Financing and Budgeting your Dream Home:

Introduction: Today, we will discuss the financing and budgeting section of building our dream home. The first and most crucial step is establishing a budget before taking your position on the start line. We will talk about financing a build, budgeting, and managing the budget throughout the build. 

1. Financing your home building project
   1. A construction loan was the only option
   2. Several banks we talked to wouldn't finance the deal
   3. Banks would finance, but not if we were going to self-build
   4. William Hendricks - Integrity Home Mortgage
2. Budgeting the home-building project
   1. Creating a budget based on each aspect of the build
   2. Specifications and cost codes for each (from clearing to closing)
   3. Using my knowledge and gut feeling, applying a guess on each line item
   4. Developed a budget based on gut feeling to have a baseline
   5. Land, County fees, Materials, Labor, etc. 
   6. Tip on saving money on your project: Don’t act like you know everything! Contractors are willing to help if you show humility and respect. 
3. Managing your budget
   1. Discuss the importance of tracking all expenses and comparing them with your budget.
   2. Set up a dedicated bank account for bank draws and paying invoices
   3. Have a purchase order system or a means to commit trades and suppliers to an agreed-upon price before any work commences
   4. Regularly review your budget and expenses. You might need to change your expectations or finishes to stay within your budget. 
   5. Common budget pitfalls: Foundation, Framing, Overspending on finishes

Vendor of the week: William Hendricks Integrity Home Mortgage

Conclusion: building our own home has been a long-term goal of mine, and it is an exciting time—financing, budgeting the build, and managing the home building budget. The project will be rewarding and exhausting, all in the same breath. 

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Carolyn can be found on LinkedIn at:
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