The first step in the building process is to select a financing institution. Several lenders have what is called a Construction to Permanent loan. This loan enables the homeowner, to take out the construction loan for a new house. Upon completion of the new home, the construction loan will then become your mortgage. The Construction to Permanent loan allows for one set of origination fees and closing costs. In addition, you only pay the interest on the draws taken during the construction process. A draw is a progress payment submitted to the lending institution by the builder to pay the trades and vendors that have performed any labor or supplied materials up to that point of the construction process. These interest payments are then tax deductible.
The financing institution will pre-approve a loan amount that they are comfortable lending to construct the new home. Each lending institution has different programs based upon the amount that will be contribute upon completion of the home. Typically, this is between 0% and 30%. In addition, some lending institutions will require a down payment of 5% to 10% at the start of the loan.
The important thing to keep in mind during the pre-approval process is the amount you are comfortable paying per month on your new home. Be sure to communicate this to your lender.Back to top
A couple of things to keep in mind when selecting a lot:
- Location. Is there a specific school district that you want to be in for your children? Is there a certain distance that you want to be from your work? Do you want to be close to parks, bike trails, grocery stores and other shopping? What type of lot do you prefer; flat, daylight, walk-out, treed, wide, deep, cul-de-sac, major street? What type of neighborhood do you prefer?
Thinking about building on a rural lot? Get more information about some of the considerations involved when building rural.
- Taxes. Be sure to inquire what the taxes will be based upon the value of your new home.
From affordable to extravagant, we are confident that we can help find the perfect floorplan for every homeowner.
House Type. Before browsing house plans, narrow your search efforts by deciding which type of house you'd like to build:
- Ranch: a one level home with all of the living area on one floor.
- One-and-a-half story: a two level home with the Master Bedroom on the main floor and one or more bedrooms on the second floor.
- Two story: a two level home with all of the bedrooms on the second floor
House Plans. Once the type of house has been chosen, you can begin selecting house plans. Here are some things to keep in mind:
- Room size over total square footage. Do not base selection on square footage but rather, the room sizes. It is suggested that you measure the sizes of your current rooms so that you have a comparison as you view new house plans.
- Exterior features. Roof styles, exterior finish (brick, stone, siding), front porches and number of garage bays can all be changed once you have selected a plan. Some changes that you want to make will be considered minor and can be discussed in the pre-construction meetings. Other changes will be considered major and will require the assistance of an architect to make the necessary changes.
- Lot measurements. The setbacks are the distance from the property lines to the foundation of your house. Determine the setbacks for the lot that you are considering to make sure that your selected house plan will fit on the lot:
- The front setback is measured from the sidewalk to the front most portion of the house, typically the garage.
- The side setbacks are measured from the sides of the house to the side property lines.
- The rear setback is measured from the rear property line to the rear most portion of the house. If you are planning on having a deck constructed on the rear of your house, the setback will be measured to the footings or post pads for your deck.
We recommend the following resources for browsing home plans:
- Advanced House Plans
- Ahmann Design, Inc.
- Builder House Plans
- DFD House Plans
- Design Basics LLC
- Donald A. Gardner Architects, Inc.
- Frank Betz Associates, Inc.
Please feel free to contact us with any questions that you may have as you look for a lot or browse through house plans.
Building a new home should be a very enjoyable process. K&V Homes strives to make the process as straightforward as possible by keeping the lines of communication open at all times. We have always emphasized to homeowners that they should not be afraid to ask a question. We are happy to share everything we know about the homebuilding process.
K&V Homes has also partnered with Plum Design to assist in the creation of an original set of plans if you are unable to find a house plan that suits your needs. By starting from scratch, the designers at Plum Design can draw a house plan that encompasses all of your ideas while still maintaining your financial constraints.
Once you have obtained your financing, selected a house plan, and found a lot, K&V Homes will meet with you to discuss your home. A detailed questionnaire will take you through the interior and exterior finish of your house. Upon completion, we will have you meet with our cabinet salesperson and window salesperson. Although you are not finalizing your selections at this time, you will obtain a preliminary bid for these items based upon your initial selections. During this time, K&V Homes will be meeting with our trades and vendors to obtain bids on the other items for your house.
We will be able to present an initial estimate to you including the allowances for various items. Once the price has been agreed upon by both parties, the signed contract, a copy of the plans, and specification packet will be submitted to the lending institution for final approval. Construction will begin on the house as soon as the lending institution grants permission.
Download our client profile for more detailed information about the building process with K&V Homes.Back to top