Colorado is often considered as one of the best places to live in America, with its cool weather all year round, breathtaking scenery, proximity to outdoor activities, and endless opportunities for high-paying jobs in various fields. Building a house can be a great investment if you're thinking of making The Centennial State your new home.
However, building a house in Colorado can be a complex process. This article will guide you through the steps you must follow when building a house in Colorado. From establishing a budget and finding land to choosing the right builder and obtaining permits, we will cover everything you need to know to make your dream of building a house in Colorado a reality.
A Comprehensive Guide To Constructing a Home in Colorado
1. Develop a plan and start putting money aside.
Creating a budget is crucial when building a house in Colorado. The cost of building can vary greatly, and it's essential to determine the required down payment and how much you can afford to pay monthly. Your budget should include the costs for permits, materials, labor, insurance, and more.
Additionally, you'll need to factor in homeowner's insurance and property taxes, as these costs are higher in Colorado due to weather-related factors such as hail and wildfires. Remember to include your down payment also and closing costs, which typically range from 2-5 % of the home's purchase price. Saving up for a budget will ensure you're financially prepared for the building process.
2. Buy a land and pick a contractor.
After establishing a budget, it's time to start your search for the perfect land and a reliable builder. There are two main options when building a house in Colorado:
Production Homes
If you build a production home, you won't have to worry about searching for land. Instead, you'll need to find a builder and visit their website to see if they offer virtual tours or in-person viewings. With your builder, you should meet with sales representatives, check builder reviews, compare floor plans, and talk to other homeowners.
Custom Homes
On the other hand, if you choose to build a custom home, you'll need to find the land. This process can take several months or even years. Consider hiring a real estate agent knowledgeable about Colorado's land market to make it easier. They can help you find land, write contracts, and make offers.
3. Ensure you have secured your financing.
Securing your financing is an important step in the process of building a house in Colorado. Whether you choose to build a custom or a production home, having the necessary funds and mortgage documents in place is crucial when dealing with a Telluride mortgage lender.
Production Homes
When considering a production house, it's crucial to take the time to compare rates and fees from different lenders, even if your builder has a list of recommended companies. Your builder may also offer incentives for using their recommended lenders, such as paying for closing costs or building optional features for free.
Custom Homes
When building a custom home, the process is similar. You'll need to inform the lender of your plans to purchase land, and they'll provide you with the necessary information to prequalify for a loan. This includes how much money you can borrow and how much you'll need to contribute to the project.
4. Take the time to match, plan, and design .
Production Homes
To build a production home, you need to match the lot with the floor plan. You may not find the lot that suits your needs immediately; if this is the case, talk to the land sales staff. When preparing to build a house, you'll also need to match your budget with the floor plan. Know which features are optional and which are included in the floor plan.
Custom Homes
On the other hand, if you choose to build a custom home, you can spend the next four to five months planning and designing your home. The planning stage is crucial as it enables you to work with your builder or architect to create a design that fits your needs, lifestyle, and budget. This stage also helps prevent mistakes, reduces the need for changes, and minimizes the risk of costly do-overs during construction
5. Get the required permits and inspections.
Obtaining permits and inspections are an essential step in the building process. Whether you're building a production or custom home, it's crucial to ensure that all necessary permits are obtained and that the home meets code requirements.
Your builder will typically obtain permits and ensure code compliance for production homes. While for custom homes, the process may involve submitting plans, budgets, and contracts to the lender for review and approval.
Key Takeaway
In conclusion, building a house in Colorado involves a series of steps that you must follow, whether you opt for a production house or a custom-built one. These steps include creating a budget, securing financing, finding land and a builder, matching your plans and designs to your budget and land, obtaining necessary permits, and conducting inspections before the final handover.
