Start With a Budget, NOT a Floor Plan
It is MUCH easier to build a floor plan based on a budget than it is to chisel away at an expensive floor plan. You will almost certainly be over budget on your construction project if you go with the latter option.
At JD Rock, we push peace of mind above all else. If you cannot pay for your “dream home” with peace of mind, it will turn into a nightmare!
Now, it probably goes without saying that the more expensive the custom home, the more the builder will profit. But as the builder, we are here to say that we would rather you build the less expensive home with less stress than sacrifice your peace and max out your budget.
We at JD Rock obviously do not know your personal financial situation – so it is up to you to do your homework and determine what you can afford. We recommend a build budget at least 8% lower than what you are pre-approved for at the bank. So, if your bank approves you for a $700,000 construction loan, we recommend not to exceed a $644,000 contract with a builder ($56K less than your approved amount). We know this sounds crazy- but by doing so, you are setting yourself up for peace of mind. When it comes time to make finish-out selections for your home (flooring, fixtures, appliances, etc), you can feel the freedom to splurge a little. However, don’t forget about all the sneaky expenses at the end of the project like paying movers to haul in all of your furniture. If you are renting a home during the build, is the timing going to align so that you never pay a mortgage and rent check the same month? If not, have money allocated for this! Are you going to want to host a party or two in your new home once you are settled? Prepare and don’t let yourself be house rich while cash poor (all your money is locked up in your home).
Again – we push peace of mind above all else. Your family will experience peace and joy in your home when you live within your means. An extra 500 square feet of living area will not produce lasting joy. Neither will a $12,000 refrigerator. Chase peace and joy, don’t chase the Joneses.
