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Maneuvering the Homebuilding Process: A Checklist of Must-Do's Before Building

Updated: Apr 15


  1. Get qualified for a loan

    We have two preferred lenders, *Jay Alexander with North Star Mortgage Advisors and Rhonda Smith with PMG Lending. We have a strong relationship and a proven track record of successfully closing loans with both of these lenders. Some topics commonly discussed include:


Debt-to-income ratio: 

The measurement of how much of your monthly income goes towards paying your debts:

Total monthly debt payments ÷ gross monthly income (before taxes) = DTI%

Ex) $1,000 in debt ÷ $4,000 gross income = DTI 25%

Your DTI is used to decide if you can handle more debt (which is typically the case when purchasing or building a home unless it is completely paid for). The lower the DTI, the better. It is recommended to have a DTI under 36%


Total Price to your monthly payment ratio:

The lender can help you figure out a realistic monthly payment you can afford based on the total price of your home. Seeing a realistic payment can help you later decide on your budget. It is also important to factor in insurance and property taxes as a part of your monthly payment.

Ex: $280,000 loan at 6.5% interest = $1,775 + taxes and insurance = monthly payment 


  1. Decide on a budget

    While your budget will depend on the loan you qualify for once you decide on a budget, it will help you narrow the plethora of options available to one that fits you best financially. Having and sticking to your budget will help cut down on extra or unnecessary expenses later on. While the quality of your home will be maintained no matter the price range, using a budget will help guide you in your selection of features, fixtures, and floor plans.


  1. Choose your floor plan

    While we can help you decide on a floor plan, building can begin sooner if you already have a design in mind. Things to keep in mind while picking a floor plan: 

    1. How many square feet your family needs

    2. The layout of your land lot

    3. A design that fits your style and budget


If you do not already have a floor plan that you are ready to move forward with, check out our floor plans available under the 'Homes' tab.




*Jay Alexander

North Star Mortgage Advisors

678-552-1513

*Rhonda Smith

PMG Lending

770-537-1105



 
 
 

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