In the begining...
Hello everyone! I have been listening to this forum for a bit and am writing this in hopes of receiving a little wisdom and direction to start me out.
Our situation: We are (fingers crossed) putting our home on the market in three weeks. We will most likely not net any profit from the sale. We will be moving into an in-law's available house for nominal rent (probably $500 per month). We will then begin saving (about $2,500/mo) and working toward building a home on property that we own in a suburban area east of Seattle, WA. We are looking at house plans in the 2,500 sq ft range in what I suppose you'd call "moderate" scale Ã¯Â¿Â½ not the cheapest build, but not so much that we are above our means. So now begins my journey of it all - and yes, I'm almost too paralyzed to begin! Would anyone be willing to share advice or experience in any regard to things like - How much should we have saved in the bank before beginning (a percentage of estimated costs?) Did you pay out of pocket for things like plans, design fees, ect before taking out the loan or did you do it all in one fell swoop? Our credit union does not offer construction loans, one bank offered an 80% construction loan. Does this factor in the value of the property or does this mean that if our house will cost $300,000 to build we need to have $60,000 as a down payment? I had hoped for a year of research and saving but maybe that is totally unrealistic. I know I have a lot of research and legwork in front of me and I've ordered some material that I hope will get me started. If these questions are putting the cart before the horse, I'll understand. I just dread walking into an unknown bank with no idea what I'm in for. Maybe I'm looking for some hope that we can actually do this and will gladly accept any advice or insight. I would also love any recommendations for books or resources that people found useful.
Details: We are a family of 5, with one in college and a 16yr old and 11 yr old still at home. We are thinking about building vs buying an existing home because the property is directly next to grandparents and family and is already owned.
Thank you for any thoughts!