Homeowners take on the task of building a guest home to give their friends or family their own space when visiting. The guest home doesn’t have to be a luxury home unless the owner can afford the additional costs. Lenders can help the property owner review financing options for a guest home with all the great features they need.
Evaluating Guest Home Designs
When considering a guest home build, the property owner must determine what they need in a guest home. For example, if they are using the property for visiting family members, they will consider how many bedrooms and bathrooms the family members will need. They must also determine what they can afford. A simple guest home design may provide their guests with adequate space without causing a financial crisis for the homeowner later.
Getting a Preapproval for the Project
The next step is to get a preapproval for the guest home project. The property owner can apply through their preferred lender to get the highest mortgage amount. By knowing how much is accessible, the property owner can choose a home design through a contractor that meets their needs and won’t exceed their budget.
The budget is defined by an affordable loan range that pays for the project but doesn’t exceed the highest loan amount available. Property owners can learn more about a preapproval by contacting Dustin Dimisa right now.
Evaluating Costs for the New Property
Contractors present estimates for the property owner according to the sign of the property and features they have requested. The estimates are adjusted as the property owner makes changes. It is beneficial for the property owner to finalize the plans for the guest house before starting the project. If they have to make changes after the contractor has started, the property owner faces higher costs.
Property Taxes and Insurance Coverage
All homeowners know that they must pay property tax every year for their property. When building a new structure on the same property, the homeowner will face higher property tax requirements. It is a great idea to contact the property assessor and ask them how much the annual property taxes could increase after the guest home is completed.
The property owner will need to start a homeowner’s insurance policy for the guest home, too. If it is in a designated flood zone, the property owner needs an additional flood policy for the guest home, too.
Avoiding Common Construction Pitfalls
Common construction pitfalls could increase the cost of the guest home. For example, the property owner must have their property inspected before getting started. This helps them determine if constructing a new property on the same land will cause problems. For example, if there is soil erosion around the existing property, the effects will present problems for the new guest home, too.
Homeowners review options for building a guest home on their property. The guest home must accommodate their visiting family members or friends. It should provide everything they need during their stay, but the owner shouldn’t overextend themselves. Homeowners can find out more about financing a guest home by contacting a lender now.