Buying a home is the largest purchase most of us will ever make so it’s important to know how much you can afford. Financing your new home doesn’t have to be confusing. At Hibbs Homes, we have relationships with a number of lenders to make financing your new home easy and worry free.
Establishing a construction budget – calculating total costs
The first step in calculating your monthly payment is determining the total cost of building your home. Included in the total are:
1. Land purchase price
2. Cost of the home
If you have a clear vision of the type of home you wish to build, we recommend taking a look at this online calculator to begin to ballpark your build. While it can’t take all of the nuances of your project into consideration, it can get you a bit closer to an accurate estimate. Of course, for a true estimate, we recommend a consultation with our team.
Calculating Monthly Payment
Now that you have your total project cost from above, you can estimate your monthly principal and interest payment. The calculator will give you a monthly payment, which includes both principal and interest, but don’t stop there. You must also add your monthly homeowner’s insurance and property taxes. These items will also be included with your monthly mortgage payment. Your lender can give you all of your final estimates and information during the qualification process. Looking for a new construction lender? Contact us for some recommendations.