Financial Smarts – Part 2
[et_pb_section fb_built="1" admin_label="section" _builder_version="4.16" custom_padding="||21px|||" da_disable_devices="off|off|off" locked="off" global_colors_info="{}" da_is_popup="off" da_exit_intent="off" da_has_close="on" da_alt_close="off" da_dark_close="off" da_not_modal="on" da_is_singular="off" da_with_loader="off" da_has_shadow="on"][et_pb_row admin_label="row" _builder_version="4.16" background_size="initial" background_position="top_left" background_repeat="repeat" custom_padding="||13px|||" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.16" custom_padding="|||" global_colors_info="{}" custom_padding__hover="|||"][et_pb_text admin_label="Title" module_class="chronospro-heading green-heading" _builder_version="4.24.2" header_text_align="left" header_2_text_align="left" header_2_text_color="#727272" module_alignment="left" custom_margin="||||false|false" border_style="solid" locked="off" global_colors_info="{}"]Financial Smarts - Part 2 What Loan Is Right For Me? Once you’ve been approved to receive a new loan to build your custom home, the next step is to determine the best loan for your needs. [/et_pb_text][et_pb_image src="https://media-upload-livingstone.s3.amazonaws.com/img/20240314152617/Elk.png" alt="owner financing homes for sale" title_text="owner financing homes for sale" _builder_version="4.24.3" _module_preset="default" custom_margin="||11px|||" global_colors_info="{}"][/et_pb_image][et_pb_text _builder_version="4.24.3" _module_preset="default" global_colors_info="{}"]Choose the right loan for your custom home so as not to build beyond your means.[/et_pb_text][et_pb_text admin_label="Title" module_class="chronospro-heading green-heading" _builder_version="4.24.3" header_text_align="left" header_2_text_align="left" header_2_text_color="#727272" module_alignment="left" custom_margin="||||false|false" border_style="solid" locked="off" global_colors_info="{}"]Construction-Permanent Loans There are a variety of loans to choose from, each with their own set of rules and terms. Your loan officer can walk you through all of the options and help you choose the right one. If you’re building a custom home, you’ll want to consider a “Construction-Permanent” loan. A Construction-Permanent (or Construction-Perm) loan has two phases: the construction phase and the permanent phase. The construction portion of the loan funds the construction activities during the building phase of your home. In this phase, you will make monthly payments based on how much money is drawn from the lender. As construction progresses, more money will be drawn from the loan. If you’d like to know just how much money is due and when, your mortgage lender can print out a spreadsheet detailing a fairly accurate estimate. With a Construction-Permanent loan, there is one set of closing costs that are paid at the front end. During the construction phase, builders will typically receive a deposit when the contract is signed and then will draw from the loan monthly. The borrower would only pay interest on payments based on the draws taken by the builder. I find borrowers are very relieved to hear this as the payments are lower during the construction. An independent inspector hired by the lender will come out to the construction site at each of these stages and check on the home’s progress so the lender can release more money to your builder. Keep in mind, they will not check for quality only to see if the builder is on schedule to receive payment. The borrower should always ask if there are any penalties if construction goes longer than 12 months. This is very important for a custom build, as the timeframe for the build is longer than speculative. Transitioning from Construction to Permanent When construction is complete and a Certificate of Occupancy is issued, the loan modifies from a Construction-Permanent loan to a permanent loan. At this time, monies for homeowner’s insurance and property taxes are due into an escrow account. This usually ranges from 1.5 to 2 percent of your loan amount. Your lender will draw up the final papers that confirm the construction phase of the loan has ended and the permanent phase of the loan is beginning. The final check is made out to you and your builder for you to sign and hand over to the builder. However, you don’t have to sign that check over until you are completely satisfied with your builder’s work. Consider Builder Financing For Your Home Loan There are typically no additional closing fees with the permanent loan. Another option to consider for a loan is using your builder’s financing source. Some builders offer special financing packages. Be sure to ask your builder if you qualify for that option. Using a builder’s financing can be just as effective as using a bank loan. Generally speaking, it’s easiest and fastest to go with your builder’s financing source if they are competitive in the market. But what if you’re not building a custom home? What if your builder has a home that’s already done and you’d like to buy it and move in immediately? This is the most common situation for homeowners. You will need an end loan. You can still determine whether you want to have a fixed, adjustable, or interest-only rate with an end loan. Be sure to talk with your mortgage lender about your expectations. Conclusion Determine the best loan for your financial needs after discussing the options with your loan officer. With so many programs and options available, choose the one that is right for you. Be sure to read Financial Smart - Part 1 here. -Sean Sullivan [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built="1" specialty="on" admin_label="Building a Quality Custom Home" _builder_version="4.17.4" _module_preset="default" custom_padding="39px|||||" da_disable_devices="off|off|off" locked="off" global_colors_info="{}" da_is_popup="off" da_exit_intent="off" da_has_close="on" da_alt_close="off" da_dark_close="off" da_not_modal="on" da_is_singular="off" da_with_loader="off" da_has_shadow="on"][et_pb_column type="2_3" specialty_columns="2" _builder_version="4.16" custom_padding="|||" global_colors_info="{}" custom_padding__hover="|||"][et_pb_row_inner _builder_version="4.17.4" _module_preset="default" global_colors_info="{}"][et_pb_column_inner saved_specialty_column_type="2_3" _builder_version="4.17.4" _module_preset="default" global_colors_info="{}"][et_pb_text _builder_version="4.17.4" _module_preset="default" header_font="|||||on|||" header_text_color="rgba(17,32,73,0.79)" header_font_size="54px" header_2_font="||||||||" header_2_font_size="34px"Read More
Financial Smarts – Part 1
Should you peruse the Sunday papers looking for the best deal or stop by your neighborhood bank to see their rates? Do you need a mortgage lender or a mortgage broker? When it comes to finding the right home financing plan, it’s really all about dollars and sense.
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What About Storage?
[et_pb_section fb_built="1" admin_label="section" _builder_version="4.16" custom_padding="||21px|||" da_disable_devices="off|off|off" locked="off" global_colors_info="{}" da_is_popup="off" da_exit_intent="off" da_has_close="on" da_alt_close="off" da_dark_close="off" da_not_modal="on" da_is_singular="off" da_with_loader="off" da_has_shadow="on"][et_pb_row admin_label="row" _builder_version="4.16" background_size="initial" background_position="top_left" background_repeat="repeat" custom_padding="||13px|||" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.16" custom_padding="|||" global_colors_info="{}" custom_padding__hover="|||"][et_pb_text admin_label="Title" module_class="chronospro-heading green-heading" _builder_version="4.24.2" header_text_align="left" header_2_text_align="left" header_2_text_color="#727272" module_alignment="left" custom_margin="||||false|false" hover_enabled="0" border_style="solid" locked="off" global_colors_info="{}" sticky_enabled="0"]What About Storage? The Importance of Adequate Storage in Home Design If you are like most Americans, you accumulate stuff. Stuff takes up space, sometimes a lot of space. [/et_pb_text][et_pb_image src="https://media-upload-livingstone.s3.amazonaws.com/img/20240214154619/Youtube_Thumbnails_For_Project_Features-26.png" alt="importance of storage in home design" title_text="importance of storage in home design" _builder_version="4.24.2" _module_preset="default" custom_margin="||11px|||" hover_enabled="0" global_colors_info="{}" sticky_enabled="0"][/et_pb_image][et_pb_text _builder_version="4.24.2" _module_preset="default" hover_enabled="0" global_colors_info="{}" sticky_enabled="0"]Our builders understand the need for great storage spaces. [/et_pb_text][et_pb_text admin_label="Title" module_class="chronospro-heading green-heading" _builder_version="4.24.2" header_text_align="left" header_2_text_align="left" header_2_text_color="#727272" module_alignment="left" custom_margin="||||false|false" hover_enabled="0" border_style="solid" locked="off" global_colors_info="{}" sticky_enabled="0"]We know How Stuff Accumulate Over the years, you may have accumulated things with sentimental value, seasonal items (decorations you use once a year), or extra playthings for those wonderful visits from the grandchildren. In the homebuilding process, many people fail to take into account their need for storage or sufficient mechanical space, and if they do, they generally underestimate the amount of storage space they will need. In a new home design, people are generally willing to pay more for a home with adequate storage than a home with more finished space that’s seldom used (e.g., extra bedrooms). Adding storage space can be accomplished in the early design stages if your builder knows this is a priority for you. The additional cost is minimal as long as your builder knows well ahead of time so he can direct the designer accordingly. Storage Solutions for Different Home Types If you live in the north, you know that most homes are built with basements, which are an excellent place for storage. However, for homes built on slabs or with crawl spaces, you don’t have that option; instead, attic spaces are often used. Some people want a separate structure, and storage sheds can be planned if requested. Another common storage solution is to create spacious walk-in storage closets within the home itself. It’s easy to create storage space in a walk-in, easily accessible, partially finished attic. Access is often located on the second story with entry from a common area such as a game room or shared space. If you’re building a one-story home, a common place for storage is the attic space above the garage. Your builder can make changes to roof framing to allow for light storage and easy access above the garage. Safety Considerations and Value-Added Benefits You should consider our country’s demographics of an aging population, and be sensitive to the safety of using a pull-down ladder to access attic space. Upgrading these access ladders to light commercial aluminum ladders is money well spent for the safety and ease of access for you and any future homeowners. You can also design attic spaces above garages that have their own separate set of stairs. The stairs are much safer than pull-down ladders; they are often not carpeted and have a very simple handrail for safety. This is an additional, value-added benefit not only for the homeowners’ safety but also for resale value. It’s important to think through your storage and mechanical needs as you begin to design your new custom home. Conclusion Don't forget about storage. Tell your builder how much of a priority storage is to you and look for opportunities to look for inexpensive storage spaces. -Sean Sullivan [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built="1" specialty="on" admin_label="Building a Quality Custom Home" _builder_version="4.17.4" _module_preset="default" custom_padding="39px|||||" da_disable_devices="off|off|off" locked="off" global_colors_info="{}" da_is_popup="off" da_exit_intent="off" da_has_close="on" da_alt_close="off" da_dark_close="off" da_not_modal="on" da_is_singular="off" da_with_loader="off" da_has_shadow="on"][et_pb_column type="2_3" specialty_columns="2" _builder_version="4.16" custom_padding="|||" global_colors_info="{}" custom_padding__hover="|||"][et_pb_row_inner _builder_version="4.17.4" _module_preset="default" global_colors_info="{}"][et_pb_column_inner saved_specialty_column_type="2_3" _builder_version="4.17.4" _module_preset="default" global_colors_info="{}"][et_pb_text _builder_version="4.17.4" _module_preset="default" header_font="|||||on|||" header_text_color="rgba(17,32,73,0.79)" header_font_size="54px" header_2_font="||||||||" header_2_font_size="34px" custom_margin="||||false|false" header_font_size_tablet="39px" header_font_size_phone="38px" header_font_size_last_edited="on|desktop" header_2_font_tablet="||||||||" header_2_font_phone="||||||||" header_2_font_last_edited="on|phone" global_colors_info="{}"]Building A Quality Custom Home Want to know more? This book by Sean Sullivan is full of helpful information in easy-to-read chapters like this blog post. It is a step-by-step guide to the “must-know” issues of building your dream home. Discover the custom-home construction secrets that could save you headaches, heartaches, and thousands (if not tens of thousands) of dollars.[/et_pb_text][et_pb_button button_url="https://www.livingstoneconstruction.com/building-a-quality-custom-home" button_text="Learn More" _builder_version="4.17.4" _module_preset="default" global_colors_info="{}"][/et_pb_button][/et_pb_column_inner][/et_pb_row_inner][/et_pb_column][et_pb_column type="1_3" _builder_version="4.16" custom_padding="|||" global_colors_info="{}" custom_padding__hover="|||"][et_pb_image src="https://media-upload-livingstone.s3.amazonaws.com/img/20231129151432/Untitled-design-8.png" alt="Building A Custom Home" title_text="Custom Home Book" _builder_version="4.17.4" _module_preset="default" custom_padding="3px|||||" global_colors_info="{}"][/et_pb_image][/et_pb_column][/et_pb_section]
Don’t Sweat the Small Stuff
[et_pb_section fb_built="1" admin_label="section" _builder_version="4.16" custom_padding="||21px|||" da_disable_devices="off|off|off" locked="off" global_colors_info="{}" da_is_popup="off" da_exit_intent="off" da_has_close="on" da_alt_close="off" da_dark_close="off" da_not_modal="on" da_is_singular="off" da_with_loader="off" da_has_shadow="on"][et_pb_row admin_label="row" _builder_version="4.16" background_size="initial" background_position="top_left" background_repeat="repeat" custom_padding="||13px|||" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.16" custom_padding="|||" global_colors_info="{}" custom_padding__hover="|||"][et_pb_text admin_label="Title" module_class="chronospro-heading green-heading" _builder_version="4.24.2" header_text_align="left" header_2_text_align="left" header_2_text_color="#727272" module_alignment="left" custom_margin="||||false|false" border_style="solid" locked="off" global_colors_info="{}"]Don’t Sweat the Small Stuff Manage Your Expectations During the Building Process A few years ago, Richard Carlson wrote a book titled, Don’t Sweat the Small Stuff— and It’s All Small Stuff.[/et_pb_text][et_pb_image src="https://media-upload-livingstone.s3.amazonaws.com/img/20240214150139/Youtube_Thumbnails_For_Project_Features-25.png" alt="don't sweat the small stuff" title_text="don't sweat the small stuff" _builder_version="4.24.2" _module_preset="default" custom_margin="||11px|||" global_colors_info="{}"][/et_pb_image][et_pb_text _builder_version="4.24.2" _module_preset="default" global_colors_info="{}"]Let your builder provide you a perfect custom home blueprint.[/et_pb_text][et_pb_text admin_label="Title" module_class="chronospro-heading green-heading" _builder_version="4.24.2" header_text_align="left" header_2_text_align="left" header_2_text_color="#727272" module_alignment="left" custom_margin="||||false|false" hover_enabled="0" border_style="solid" locked="off" global_colors_info="{}" sticky_enabled="0"]Perspective in Homebuilding In his now famous book, he said, “Often we allow ourselves to get all worked up about things that, upon closer examination, aren’t really that big a deal...” That’s not only good advice for life, it’s especially important during the homebuilding process. I can assure you, there’s going to be a lot of small stuff during the building of your home. Many people who frequently call their builder’s office worrying about minor things make the building process much more difficult, both for the builder and for themselves. A homeowner who worries when a subcontractor is two hours late to the job, or needs to know why a two-by- four has a knot hole in it, or notices some sawdust in a corner of the living room can take the wind out of anyone’s sail and cause delays. Yes, it is important to let your builder know if there are things that truly concern you because your builder wants to provide a complete and pleasurable experience. However, people who view every little thing as a “big deal” and worry about it all (especially those who call their builder daily with their current worry list) are never going to be satisfied. Case Study: The Pitfalls of Over-Attention to Detail Jordan was someone who excelled in “sweating the small stuff” during the building of his new home. Throughout the design and contract stage of his new home, Jordan was a delight and seemed to be the perfect candidate for a successful project. The trouble started when his builder mentioned the surveyors were scheduled for Thursday. Even though the survey work didn’t need to get done for at least two weeks, the builder wanted to schedule it early so it wouldn’t be a critical component in the building schedule. At 7:00 Thursday morning it was raining buckets and continued to rain all day. Early Friday morning, before the builder’s offices opened, Jordan called because he was worried about the surveyor. The builder explained to him that because of the full day of rain the previous day, the surveyor was delayed by a day. Jordan was stressed. It was the first of many times throughout the process that Jordan was “sweating the small stuff.” A week later, when the material was dropped at his lot so construction could begin, the delivery truck got stuck due to all the recent rain. The builder’s office got another call from Jordan wanting to know all the details about why there were tire ruts in his front yard. The day the foundation man was scheduled he was delayed because of traffic. Another phone call from Jordan. Once the foundation work was prepared, Jordan called to find out what day the inspection would occur. Once inspection passed, Jordan wanted to know what the inspector said and why the inspection card in the permit box was signed off in black marker instead of blue ink. After the foundation was installed, there was a bag and a half of mortar left over and two wheelbarrows of sand. Jordan called to ask what was going to be done with the leftover material. It went on and on and on throughout the entire job! Jordan continued to “sweat the small stuff.” No amount of meetings and explanations could convince Jordan to let the builder do what he had hired him to do. It was counterproductive to the relationship and impeded the builder’s ability to execute the job with excellence. The builder spent more time answering Jordan’s questions about the small stuff than he did looking for opportunities to build his home in the most efficient and effective way possible. Focus on the Bigger Picture: Quality and Timeliness It’s important to know that if you’re going to sweat the small stuff (and remember, as Richard Carlson said—it’s all small stuff), it usually will not help you get what you really want. At the end of the day, you and your builder both want the same thing: a quality, custom home completed on time and within a reasonable budget. So relax and let your builderRead More
