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Building Considerations
 The following
information is presented in outline form to quickly give you ideas in the
planning of your home. We know that not all questions or steps are addressed
here, but this will get you started. Contact LJ Construction for more specific
answers to your individual needs.
 I. Five Major Considerations in Getting Your Dream Home Built
 A. Land: finding the piece you want and selling what you've got
B. Design: deciding what you need, how it will work and what it will look like
C. Financing: finding both mortgage and construction money
D. Construction: hiring the right General Contractor
E. The Budget
II. Land Considerations
A. Can the land be built on?
1. Septic permit - percolation or soil evaluation tests
2. Ingress and egress; encroachments and easements
3. Covenants or restrictions on size, building materials, style, etc.
4. Planned or proposed construction around property
B. View, privacy, convenience, location, etc.
C. Final house design will adjust to fit property
D. Land should represent 15%-20% of total budget in most cases
III. Design Considerations
When you closed your eyes and
pictured your home, did you see it from the outside or inside. Most see the
outside. But we live inside. Therefore, the residence should be designed, first
of all, to function the way we want - to get the proper flow and to work to meet
the needs of our family and lifestyle. That means designing from the inside out.
Don't worry about the outside, we can make it look like your vision, and I
guaranty the neighbors will be impressed!
To begin, make a prioritized list of
the following:
A. Actual needs: Number of bedrooms, baths, floors, etc.
B. Priorities: Master suite, big kitchen, dining room, family room, porches, etc.
C. Foundation: slab, crawl space, basement, walk-out (adjust to site)
D. Placement of rooms: Children's bedrooms in relation to master, utilities
E. Amenities: garage, spa, mud room, etc.
F. Assign room sizes and space requirements for each room
G. Make sure plan fits lot or that lot fits plan.
Compare list to budget. Ouch! Start separating "Gotta have's" from "Nice-to-have's"
Refine until all needed elements are included in an acceptable affordable plan. LJ Construction is an expert at helping you to arrive at the right design solution.
IV. Financing
A. Mortgage Financing
Nearly all mortgage lenders lend money according to a set of standards established by the Federal National Mortgage Association. The guidelines to appraise the value of a property tell the appraiser to find three homes of similar style and construction that have been built and sold in the same area as the house in question within the last 12 months. The sale price of these would be compared to the proposed home to establish the home's market value. These homes are referred to as "comparables" or, shortened, "comps." A mortgage can then be issued, based on the appraised value of the home and property, the construction costs and the customer's credit and ability to repay the loan.
B. Construction Financing
The mortgage, or long term financing, will only be issued on an existing structure. A construction loan must be arranged to get the home built. Many banks can issue both types of loans, rolling them together into what are called "Convertible" or "Permanent" Construction loans.
In the event that your mortgage is coming from a different source than your construction loan, which can be written by a local bank, the mortgage company can issue an Irrevocable Letter of Credit, or L.C., to the bank guarantying that the construction loan will be paid off by the mortgage company upon completion of the home. The construction loan can then be written by the bank with the assurance that they will be repaid according to the terms of the L.C.
Construction loans are generally written as 90 day or 120 day notes. Funds are made available either at set intervals as different stages of construction are completed, called "draws", or as receipts are turned in as proof that work has been performed. Each bank will have its own method of payment and inspection.
V. The Construction Process
Hiring the right General Contractor to build your home:
1. Choose LJ Construction because you can trust them to build it your way.
2. LJ Construction will show you the quality of his homes, by taking you to a completed home.
3. LJ Construction will help you by making suggestions, but ultimately the
decisions are up to you.
4. References of customers are available upon request, for you to call and discuss their experiences with LJ Construction.
5. When Quality Counts, Call us First!
VI. The Budget
Close your eyes and picture the home that you want to build. Keep focusing until you get a clear picture of your home. Look at it in as much detail as you can imagine. Good. Now, open your
eyes... and get out your wallet! REALITY CHECK!
Nobody's dream is to be in heavy debt for the rest of their life. To really be what you want it to be, your home must be affordable, comfortable to maintain. The budget - how much money you are able or willing to spend on the project - will be the most limiting factor in the above considerations.
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