What are your hidden costs to build?

The "hidden costs to build a new home can be broken down into three basic categories: lot, loan, and living expenses. 

The primary hidden costs when building your home come from lot situations or circumstances...How much driveway do you need? How much underground utilities? Do you need a sewer plant, culvert, or dirt pad? Things like that. A site evaluation by your builder can generally clear up a lot of the guesswork on these things! 

For financing, most people know about closing costs (which will include things like your appraisal fee, an origination fee, filing expenses, inspection fees, title searches, and examinations & a No Work Affidavit). this is the bulk of expenses for both mortgage and construction loans, but there are a few other costs you might want to keep in mind. For construction loans, once you make your first draw you will need to begin making the "interest payment" on the amount you've used to date. This means you will be paying a "mini-house note" during the actual construction. There's also generally a smaller closing fee that needs to be paid in order to roll your construction loan into your permanent mortgage. Additionally, if you put down less than 20% on your home, you will have to pay PMI (private mortgage insurance) which protects your lender if you were to default on your payments. 

After closing, aside from the basic set-up needs like blinds, furniture, and any moving expenses, i.e. truck rental, moving crew, etc.), you will also need to have all of your utilities set up and turned on. Water, electrical, gas and sewer companies all charge a "connection fee" and can even ask for your first month's payment in advance. Depending on our home location and personal preferences, you might also need to arrange for trash service, alarm installation, and landscaping. 

Like with all big like changes, moving into a new home comes down to "wants" and "needs." Just figure out what absolutely needs to be done and then add the rest gradually as you can! At the end of the day, you have to ask yourself, will you really mind waiting to get that perfect patio furniture for the first couple of months when you're in your brand new, gorgeous home??