Self Build Finance
No self-build venture can be entirely safe, but if you follow the basic rules you are most unlikely to have any major problems. Self-build disaster stories are few and far between and tend to be self-inflicted.
If you want to self build finance a new home, you have to know the answers to the following questions:
1. If a mortgage is going to be involved, what can be arranged, and how much is it going to cost when the property is finished?
2. Where is the money coming from to pay for the site before a start is made?
3. Where is the money coming from to pay for the materials, subcontractors and services as work proceeds?
4. How can this be managed so that I pay as little interest as possible?
5. What warranties will be required by those who will be financing the project and lending the self build finance?
6. How can insurance cushion the major self build finance risks?
7. How can all the self build finance be done without placing an unacceptable strain on the family's pattern of living?
Whichever route you decide to take when arranging self build finance for an individual home, it is very important to give careful thought as how to make your approach to the lender in the best possible way.
Take along with you any documentation that you may have to convince them that you have researched the construction stages thoroughly, including quotations from sub contractors that have given fixed price quotations for various works.
Whoever you eventually see, they will need convincing that you are a good bet, a secure risk. If you can put forward this ideal, many avenues of self build finance should be open to you.
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