Others have provided some good information already. But I'll touch on a few things that others haven't:
Quote:
Originally Posted by supafamous
- Beyond the cost of the property and the builder's cost what are the additional costs I need to consider? How much will a lawyer cost (do I need one)?
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I only needed a lawyer to help with the documents associated with buying the property. Didn't need a lawyer during or after the construction process.
Quote:
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- What does the bank expect from me? I assume I need a construction mortgage (I don't have 1.5MM lying around).
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A contractor will make you pay in stages (maybe 3 stages?), and a construction mortgage allows you to draw funds in stages as well. I could be wrong, but interest rates for construction mortgages might be higher because there is a bit more risk for the bank. Once the construction is complete, your construction mortgage will be converted into a regular mortgage.
Do you need money just to pay for the construction? Or do you need money to pay for the lot + construction? In my case, I only needed money for the costs of construction. So I went to the bank, showed them I owned a old house, and they qualified me for a regular mortgage. I didn't tell them I demolished the old house and used that money to build.
Here's my thread from 2012:
http://www.revscene.net/forums/66623...new-house.html
And here's another thread from 2014:
http://www.revscene.net/forums/69263...ouse-tips.html