Many potential custom homebuyers have the dilemma of owning a current home while at the same time entertaining the possibility of getting a new one. While in most cases this is a really difficult situation to be in, in the final analysis one needs to determine where their comfort level is with regard to risk so as to best determine the right course moving forward to achieving the dream of a new home.
According to bathroom remodeler experts, there are two approaches to consider if you want to build a new custom home while still owning your current one, The first is to sell the current home prior to beginning construction of the ne custom home and beginning construction on the new home prior to selling the exiting one.
Sell Prior to Beginning Construction
This option will give you the knowledge to determine exactly the amount of money you will have before the new custom home project begins assuming this will be your primary means of financing the bulk of the project. The big downside is you will have to account for living expenses in temporary arrangements and move your furniture a couple of times during the entire process. One option would be to convince the buyer to allow you to remain in the property and pay rent until you move into the new home. Another would be to just simply find an apartment to live in while waiting for your new home to be constructed.
Construct Before Selling
According to Salt Lake City custom home builders specialists this option will allow you to move things quickly with respect to the move as well as avoid the need to get some temporary housing arrangements. The risk of course is you will not have that liquidity needed to finance the home unless you already have prepared for it. One way to get past it is to get a construction loan where you pay only the interest on the amount of the mortgage as it is advanced in order to cover the different stages of construction so that you will not have to make a full payment until the end of construction.
You may want to consider a blanket mortgage on your current home as well as the new one that is about to be built. Once the current home is sold, the mortgage amount is reduced the proceeds of the sale.