Defining The Dream Home And Remodelling

Can you guess how far it is between these two points? A: The starry-eyed dream of building your own home. B: The passionate and committed decision to build the home of your dreams!

Actually, only you can answer that question accurately ... as it relates to you! Personally, I've noticed that for so many people, the distance is staggering. And the gap is often a deep chasm that results from the dread of the unknown.

You see, the dream of home building, or even remodeling, is often followed by that nasty little devil of fear. So what happens? RETREAT! Yes, we retreat back to our comfort zone, put that dream away for a while and breathe a sigh of relief that we won't have to face THAT devil again for a while!

But, what happens when you dare to face your fears and make a decision? What happens when you actually take the dream and give it life by adding action and the "real time" details that bring building or remodeling your own home into focus? Details like who, what, when, where, why and how?

THE PERFECT HOUSE PLAN

It wasn't long ago that I was displaying house plans and building materials at a Home Show and watched as some folks were eying the home designs on the table. They seemed intent on them and I sensed they wanted to talk to me. I asked them, "Are you planning to build a home?" Their answer was to laugh nervously.

"We have our building lot and as soon as we find the right home plan, we'll build" they answered with another laugh. Now, as this didn't seem that funny on the surface, I knew there was something behind the laughter. As it turned out, they'd been looking for that "perfect house plan" for six long years! Needless to say, they had not made a strong decision to build.

CLEAR DECISIONS BREAK DOWN BARRIERS

To make a long story short, I was able to help these folks decide upon a house plan. This didn't happen because I knew just what would be good for them. It only happened as I helped them gain the clarity they needed through a series of questions and answers about what they really wanted and why they were stuck in neutral.

Could you gain some clarity? What's holding you back? Are you looking to break those barriers that have kept you from moving forward with your home building dream? See if you can relate to one or more of the following limiting mindsets ... maybe one of them will get you closer to that empowering decision so your path can be cleared.

• The home building dream is only a wish until you make it specific and measurable: What specifics are missing in your wish list?
• Wanting to build but having no idea what that new home will really look like does not make for a good aiming point: When will you create that one vision that turns your fuzzy homebuilding picture into a sharp vision?
• Simply thinking that you want to build a home, but having no idea what the cost of building is, means you're happy enough with the warm, fuzzy feeling of "some day maybe:" Who will you contact to determine building costs of your area?
• Looking at house plan after house plan without narrowing down the features and benefits that really work for you: Why do you choose to remain so general and what are you fearful of?

THE POWER OF DECIDING TO BUILD YOUR OWN HOME

Nothing happens until you make a decision! The powerful action of deciding exactly what you want is the catalyst needed to make a whole series of decisions. Dozens of decisions come together once you gain focus.

So, what will you do today or tomorrow to bring you closer to a decision about what you want in a home?

Will you identify the one single scariest feeling you have now and resolve to find an answer?

Will you find one single decision that you can definitely make and follow through on? Progress is made by taking one step at a time.

Define your home dream first. It's empowering!

Need Of Finance For Your Dream Home

It might just be a lot easier than you think to get the money you need to finance your home-building dream. In this article, I identify seven financing strategies, and I know that at least one can work for you.

Don't let that dream die! Building your own home is one of the most exciting, and noble endeavors anyone could ever attempt. I want to encourage you to explore all the ways that you can make this happen for you. The money necessary to take you from dreaming and scheming to planning and doing is waiting for you.

Which approach is right for you?

1) Your local banker:

Your local banker is there to make money. He makes money by making loans. He sees a brand new home as a great investment for you, and for him. Yet, this won't work in every case. Here's what you need to ask:

Find out if he makes construction loans to owner builders. Ask him how much down payment is required and if you need to own the building parcel free and clear of any loans. Be sure to also ask him if a General Contractor is required.

2) A mortgage broker:

This can be a great option. A few of them will specialize in construction loans. A mortgage broker usually has more options available than a bank and you can learn a lot from a good broker. Be sure to ask her the same questions you would ask your banker.

She can arrange for the money for you from "institutional" sources (like bankers do) or she can find private lenders. Private lenders will usually cost you a little bit more but it is often well worth it. You should definitely consider this option and compare.

3) Rich Uncle:

I'm never surprised to find this option working for some people. No, it doesn't have to be Uncle Bob, it can be any family member or friend. Be sure to keep it a business transaction. And it needs to be profitable for the "investor".

You'll usually save money on fees when you borrow this way but don't expect it to be free. You'll want to make it official. Using a real estate attorney would be a good way to draw up the papers correctly. Done right, it's a great deal for you and a great investment for him or her!

4) Home equity line of credit on your current home:

You'll have to check the laws of your local area but this works very well for many people. Your existing home will usually have to be free and clear to have enough value to fund a construction project or you'll likely have to add cash yourself.

This type of loan is probably the least expensive to set up and the easiest to access during construction. If you're in the position to do it this way, it is probably the way to go. Again, check the laws, then check with your banker to set it up.

5) Borrowing against your investment portfolio:

You'll need a substantial investment fund to pull this off. But, if you have it, it usually makes sense to borrow against it rather than sell it to fund your home building. This way you'll keep your growing assets in tact and add another!

Naturally, you'll want to get expert advice first. You don't want to borrow against investments that are losing value. (Why would you even want to keep these?) With this option, the fees are low and the loan can be paid off at the completion of your home with a regular mortgage.

6) The Pay-as-you-go construction "loan":

Right, this is not a loan! But it is a way of funding your project. I'm not in favor of it though. However, if you want to do this, don't neglect setting out a very clear plan for the money and the time it will take. If you can't finish in two years, (3 maximum) I wouldn't do it, period.

7) Packaged, panelized, kit homes with financing:

This might just be your best option but you'll have to do a lot of research on this one. There are kit home/panelized home packages all over. Some are good and some not-so-good. Most offer financing options with the purchase of your home package. Please see other articles and e-books on this topic.