Figuring Finances when Building Your Own Home - dummies

Figuring Finances when Building Your Own Home

By Kevin Daum, Janice Brewster, Peter Economy

Part of Building Your Own Home For Dummies Cheat Sheet

Building your own home means you keep a close eye on the money flow. Determine finances before you start the process of building your home and review them periodically. Fill in the blanks in the following list, and keep this important info nearby for quick recall when you meet with your loan officer:

  • Total cash available: __________

  • Amount of cash I’m willing to put toward the project: __________

  • Maximum monthly payment I’m comfortable making: __________

  • My payment can be increased by __________percent from income tax savings.

  • This payment is __________ percent of my gross monthly income as reflected in my tax returns.

  • Monthly credit card and installment loan payments: __________

  • Credit history or credit score: __________

  • Type of home I want to build (owner occupied versus secondary residence): __________

  • I intend to have this property or loan for __________ years.

  • I plan to use a contractor, yes or no: __________

  • My home will be __________ compared to other homes in the neighborhood (similar, much larger, much smaller).

  • It will take __________ months to build my home.