Hello everyone,
Great to have this community!
My husband and I are planning to buy a house or build a new one sometime in the distant future. People often stick to their usual ways, but right now I’m missing a clear structure for the optimal process.
One thing you should know: we have hardly any(!) savings or equity.
I keep wondering: Is it better to buy the plot of land first (with a loan), OR do you find a plot and a suitable planned house together, then approach the bank with both to apply for a mortgage? I imagine the second option might be difficult since the house design won’t be completed within just two weeks.
Regarding the first option, which I find more appealing, I wonder if I would still be able to get a loan for the house since I’d already have debt from the land purchase?
Or the third option: Do you find a construction company that “sells” both the house and land together?
How did you approach building a new house?
Thanks a lot!
Great to have this community!
My husband and I are planning to buy a house or build a new one sometime in the distant future. People often stick to their usual ways, but right now I’m missing a clear structure for the optimal process.
One thing you should know: we have hardly any(!) savings or equity.
I keep wondering: Is it better to buy the plot of land first (with a loan), OR do you find a plot and a suitable planned house together, then approach the bank with both to apply for a mortgage? I imagine the second option might be difficult since the house design won’t be completed within just two weeks.
Regarding the first option, which I find more appealing, I wonder if I would still be able to get a loan for the house since I’d already have debt from the land purchase?
Or the third option: Do you find a construction company that “sells” both the house and land together?
How did you approach building a new house?
Thanks a lot!
For us:
We simultaneously looked a bit at plots of land and started making some initial contacts with construction companies.
We found out that good acquaintances/friends of ours still have a plot "available" (great location).
We talked with them and clarified their expectations and received a promise that they would keep it available for us until we were ready, meaning the house design and overall planning were at a point where the total budget for financing was clear.
We searched for the final builder and eventually signed a contract.
Then we secured the financing and purchased the plot.
Of course, this only works if you are lucky enough to have a plot from friends. Between our conversation with them and the land purchase, they actually received several other purchase inquiries, some offering more money. But fortunately, they are the type of people who keep their word.
We simultaneously looked a bit at plots of land and started making some initial contacts with construction companies.
We found out that good acquaintances/friends of ours still have a plot "available" (great location).
We talked with them and clarified their expectations and received a promise that they would keep it available for us until we were ready, meaning the house design and overall planning were at a point where the total budget for financing was clear.
We searched for the final builder and eventually signed a contract.
Then we secured the financing and purchased the plot.
Of course, this only works if you are lucky enough to have a plot from friends. Between our conversation with them and the land purchase, they actually received several other purchase inquiries, some offering more money. But fortunately, they are the type of people who keep their word.