Achieving the Homebuilding Dream

Having the ability to build a home from the ground up is what most would consider an American Dream. It is something everyone should feel confident enough to achieve. However, building a home can also be considered a personal dream. Having a safe, new home can provide us with the security and safety that we need which will give us all the ability to improve and thrive.

Beginning the process of homebuilding can be stressful to most. At Faber Builders, Inc. we want to ensure you that we have trusted individuals to help guide you through this process! Our salesman are here to make this experience the most positive for you. With their knowledge, and your answers to the questions below, you can start your building your dream home today! 

1. Where do I start?

Beginning the process of homebuilding can be stressful. There are many decisions that need to be made such as where you would like to live, floor plans, how much space you will need, work commute, and the biggest decision, your budget.

Once you come to a decision on all these things, you will have to apply for a mortgage. Whichever lender you choose will look at many different factors to decide what you will be able to borrow, which will include your credit history. Many lenders are looking at how you have been able pay credit card debt, student loans, car loans, and any other debt in the past. According to Freddie Mac: “To get a rough estimate of what you can afford, most lenders suggest that you should spend no more than 28% of your monthly gross (pre-tax) income on your mortgage payment, including principal, interest, taxes and insurance.”

2. How do I save enough for a down payment?

Knowing how much you can afford for a down payment is very important. This may be a difficult decision, but there are many resources to help! According to Business Insider, it can be beneficial to use some sort of automatic payments to help you reach your target goal. “Automatic savings can bring you one step closer to achieving your target down payment. If you receive your paycheck as a direct deposit, you may want to arrange for your company to send a percentage of each check directly into a savings account for the down payment… The automatic- savings strategy makes it so you don’t have to constantly remember to save money!”

This will help you reach your down payment goal before you know it! You may need to save less for your down payment than you thought. At Faber Builders, Inc. we require a 10% down payment. So, if your purchase price is $300,000, that means we would need a $30,000 down payment. This may sound like a large amount, but 10% is a lot less than what most places require!

3. How can I reach my financial goals?

        Sticking to a planned budget is a great way to help you increase your savings. There are several tools available to help you budget. You can visit moneyfit.org and they provide you with budgeting worksheets and tips to help you when you begin saving. There are five rules that MoneyFit recommends you follow which are:

1.     Identify Goals

2.     Record Expenses

3.     Record Earnings

4.     Compare and Calculate

5.     Fix Weak Spots

        For those of you that are already budgeting, look for ways to tighten your spending to help reach your goal of homebuilding. Putting a little extra each month into your saving will add up as time goes on.

Bottom Line:

Your dream of homebuilding is closer than you think. It is achievable if you set a goal for yourself. Faber Builders, Inc. is here to walk you through your journey. Contact us today to begin your process!

The post "Achieving the Dream of Homeownership" was originally posted on the Keeping Current Matters website.