WHEN BUILDING YOUR NEW CUSTOM HOME, A CONTINGENCY PLAN IS ALMOST AS IMPORTANT AS YOUR HOUSE PLANS→

When building a new custom home, a very important part of the process is establishing a "Contingency Plan" up front at time of Lot Contract.

The word Contingency, pronounced con·tin·gen·cy,  a noun and is further defined as; a future event of circumstance that is possible but cannot be predicted with certainty.  With regard to building your new custom home, it would be included in "a detailed contract that attempts to provide for potential contingencies" to protect your best interests.

It is also important to do your homework and protect yourself and your family against unforeseen issues and create the best possible opportunity for yourself to be successful.  It is no different when you are building a new custom home, possibly your families "forever home", a treasury chest of found family memories for many years to come.

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One of the most important features of your new home, second to the Real Estate Industry saying "Location, Location, Location" is the layout and design of your new custom home on your lot.  The size, shape and design as well as the restrictions in place can dictate what you can and can't build, how the house must be positioned and what you can do with it.  This can affect the overall livability and enjoyment you and your family dreamed about.

Establishing a "Contingency" or study period up front in your lot and/or building contract for a specific period of time which allows you and your builder / realtor time to investigate and find out all the details, possibilities as well as potential restrictions for your new dream home is very important.

You want to allow ample time to investigate and design your new home for the lot you are looking to purchase.  Typically these study periods run from 15 to 45 days and they are unique to your situation.  If you already have a home designed, the time frame could be significantly shortly, if not, you would want to allow yourself enough time to design your new home, insure if fits the lot constraints / restrictions and of course, is well within your budget.

Ultimately, it would also provide you with enough up front time to prepare for your formal loan application to obtain your Construction Permanent financing so that you may close on your lot purchase and the financing for your new home at the same time.  This cuts out the additional cost of closing on a lot loan and then refinancing it and this should be apart of your overall plan as well.

After all, when building your forever home, the foundation of found family memories for decades to come, you should make sure you get everything you ever dreamed of at the most affordable price.