You're thinking of constructing a new home or adding space to improve your life - you have a vision. As you begin to confront the practical aspects of your vision, such as costs, land, and the selection of the builder, it is important to retain sight of the home that you imagine. The following Web pages contain suggestions and actions about budgeting, finding land, and design. The advice offered will hopefully aid in the realization in of your dream.

Budgeting is the most important part of the design process. What you can afford helps determine the design choices you'll need to make.

A budget can help you prioritize your Needs and Wants. Needs can be defined as those items you must have. They are usually the reason for the project in the first place. Examples would be: a second or third bathroom, a fourth bedroom, a home office, a three-car garage, and so on. Wants include anything that would enhance your comfort or happiness. A security system, whirlpool bath, sound system, and a second kitchen for canning are examples of wants.

Begin the budget process by going to your local lending institution and applying for a loan. Remember not all lending institutions are created equal. Shop for the services that are best suited to you! Listen closely to what they have to offer. Ask if interim financing is available (construction loan). Ask about points and how much are they? What is the difference between an ARM and a Conventional loan and which one would make the most sense for your situation? Other considerations include what’s required for the down payment, will mortgage insurance have to be purchased and what will the closing costs be?

You will need to prepare for these visits by bringing the following:

· Financial statements – your latest bank statements.
· Proof of employment – pay stubs, W-2, or any other proof.
· If self-employed – bring signed copies of your last 2 years tax forms.
· Bank account numbers
· Name and addresses of creditors and the balance due for each account.

These items will assist you in filling out your application with the intuitions. From your application they will be able to determine the amount you can borrow and ultimately allow you to decide on what you spend.

If you are fortunate and don’t need a loan, you still have to address what you are willing to invest in your new home.