Construction Loan Article Center

Sunday, July 16, 2006

6. I already know the community I want. Is there anything I should consider in selecting the actual size?

There are a few other considerations to be made. Look around at the available finished lots and try to determine build ability. You will need land that has a build able pad, uncontaminated soil, and an area where the city or county will allow you a permit to build the size and type of home you would like. A site that was previously used for a gas station or dump may contain soil with toxins in it. The same may be said for a site once used as a commercial property in which case you may need a soils engineer to test the site. It is once again important to have an experienced real estate agent or title company officer in order to assist you in deciding whether or not it is necessary to do a soil study. The seller may already have a full report on the site in situations where the property is located in a new community.

The grade level, or slope of the parcel is another element of the land that needs to be considered. Property located on a hill may require more extensive and costly work on the foundation and structure in order to make it build able. In this sense, although a location on a hill may offer a nice view and increase the property value the cost to build is higher as well.

Don't forget that a construction loan is based on future value, so check the area carefully for recent sales data and make sure you are not overbuilding for the area. The final consideration, lot size, is a decision specifically for you, the homeowner, to make. It is important to consider not only that your lot is large enough for your dream home, but also the amount of time and money you will spend on the yard. For example, if you like to entertain outdoors and do yard work or on the other hand if you dislike yard work this may factor into your decision of lot size.

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