Rural 1st has the lending expertise and rural focus needed to offer construction financing packages tailored to your specific needs. That’s why we’ve developed this video series for people wanting to build their dream home in the country.
Just like your construction crew lays the foundation before building, you lay the groundwork for your construction journey during the pre-application phase. While there can be a variety of things to organize early on, this is one of the most exciting phases; it’s where you start to turn your dream into reality.
Planning a Rural Home Build
While everyone’s rural dream looks different, you should determine what kind of home you want to build and what you want it to look like. Whether you’re interested in building a log home, barndominium or traditional home, knowing what kind of structure you have in mind is important in determining your next steps.
Maybe you already own land and now you’re ready to build, or maybe you’ve found the perfect lot to purchase and want to start building right away. All the exciting possibilities start to come up in the pre-application stage.
At this point, it’s important to talk with the right experts, define your budget and understand your timeline to build. Knowing the answers to these types of questions can help ensure a smooth construction journey.
This critical first stage helps identify all the necessary steps before you can break ground. It’s here where you’ll talk with a Rural 1st loan officer about everything needed to build your new home. This includes:
- Construction plans, bids and specifications required for your build
- Financial documents needed for your application
Your loan officer can help you understand what to expect along the way.
Selecting the Right Builder
Using a builder who understands your needs is incredibly important. We recommend you get at least three bids from local builders and check their references. Ask them if they have built a rural home similar to what you have in mind, then speak to homeowners who have worked with them in the past. This way, you assemble a strong team with the experience to bring your vision to life.
Understanding Rural Building Expenses
Once you’ve determined your builder, you’ll work together to determine the cost of your construction project. Don’t forget to factor in any upgraded materials, the costs of permits and any site improvements, such as landscaping, fencing or outbuildings.
It’s critical to keep in mind rural construction costs that may not be typical of urban areas. These can include constructing the driveway, laying power lines and water and sewage access.
Budgeting for Extra Expenses
Be sure to have plenty of cash reserves on hand. A typical construction project can require a good deal of out-of-pocket money and final construction costs could run as high as 10% over your initial budget.
It’s important to know where that money will come from before you build, in case of cost overruns. Your Rural 1st loan officer is here to support you throughout this process with helpful guidance and insights.
Continue watching this video series to learn more about the construction loan application process. If you’re ready to get started, reach out to our team of rural lending experts today.
