Home Construction and Renovation Considerations
Codes and Regulations
Before you begin planning your new construction or renovation project, there are a few groups you’ll need to check with. First, consult your city or county building department. They’ll be able to tell you if there are any zoning restrictions you’ll need to take into consideration as well as help you determine what permits you’ll need. If you’re a member of a home owners’ association you’ll need to consult your manual or the head of the association to make sure your project will not violate your association agreement.
Contracting
The next decision to make is whether you want to hire a general contractor to manage the project for you or serve as your own general. If you’re familiar with codes and have the ability to closely supervise the work being done, serving as your own contractor can result in considerable savings. However, if you have limited time and experience, a general contractor may be able to offer a wider array of possibilities and offer savings in the form of time, headaches and possible re-work.
Financing
The process of financing, for both new construction and renovation projects, is quite different from that associated with purchasing a new home. Typically, individuals will be given an initial sum to spend and then be required to show receipts as proof of progress, prior to receiving further draws on the funds. However, for a small renovation project the entire sum may be distributed at the time the loan is processed. Payment is also a bit different, in that you will only be required to make loan payments against the portion of the total funds you have used each month. Because of this, your monthly payments will increase as the project moves forward. As with most loans, banks will require that insurance be …