I started a blog series answering common home building questions. My goal is to provide you with a quick answer (300 words or less!) to a common question and when I can, give you resources to find more information on the topic.
Today, I’m answering the question – What Money Do I Need Upfront When Building?
A very common question when we are talking to someone who is interested in building a custom home on their lot is how much cash they need upfront. When signing with NDI to build your custom home, we will take a $5,000 deposit to cover pre-construction expenses on the house side (fees to develop the house plans). If we are managing your site work for you, we will take an additional $15,000 to cover pre-construction expenses on the site side (grading plan, cutting off utilities, permit runner fees, etc.).
You will (typically) need cash to close your construction loan and to pay for your Builder’s Risk insurance policy. County permit fees will also need to be paid once the building and grading plans are approved.
If you are interested in building a custom home, contact us today to learn more!
Dream. Build. Live.