For many, the idea of designing and building a dream home is the penultimate item on their wish list. In reality, though, most people will never dare to reach for this dream’s fulfillment. Fear of the unknown keeps many of us from attempting the things we truly want. This shouldn’t stop us if building our dream home is truly our desire. While definitely a challenge, if this is your true longing, it’s an attainable goal.

The First Step

Knowing what you want and what you have a budget for may start out as two different things. Before you start researching construction loans, it’s a good idea to know a few things. Where are you building? Is there something else already there you have to rip down or are you going to alter it to meet your needs? What about the landscape? What’s your vision for that? Do you know what appliances you’ll want? Then there’s a contractor. In order to qualify for most construction loans, you’ll need to have a written plan that answers all these questions. Your contractor, who can help you answer these questions, will need to be licensed and insured. You will also need both a 20 to 30% down payment and to ensure your credit rating is above 680 because lenders who offer construction loans won’t qualify you if you don’t.


Once you’ve sorted out everything you need to know about plans and construction loans, there’s the construction itself. If you’ve done your homework on your contractor, you know exactly what this step will look like. You’ve asked to see license and insurance proof. You know how long the contractor has been in business and you’ve spoken with some of his or her satisfied customers. You’ve done some digging on the internet to see what other customers say, too. You know which of you is responsible for obtaining permits and setting up inspection appointments. Both the time line for completion and the payment schedule have been spelled out and agreed upon. You also know whether you’ll have a dedicated team working on your home, how to contact both the contractor and the project manager and what their typical workday will look like. Additionally, you’re clear about the steps the contractor will take to protect your property, where tools will be stored and whether there’s a warranty for any of the goods or services your contractor supplies. One more thing, you should ask how your contractor plans on settling disputes with you. You’re not asking for trouble with this step, you’re just preparing for the worst while hoping for the best.

Careful preparation with the early steps like construction loans and choosing a contractor can turn your dream home into a reality.