Home Building 101
Before you start construction on your new home, you need somewhere to build it, and this means finding land.
First consider the size of the plot. How big do you want the house to be? How much yard space do you want? Do you want a garage, concrete pad or will you park on the street?
Next, make sure the land is properly zoned. If you see other single-family homes near or next to your proposed location, you're probably fine, but always check with your municipality. Some have bylaws that dictate overall home size, the size of detached garages or even how much of your yard must be covered with grass.
If zoning checks out, your next step is money. Find out how much the seller wants, head to the bank with your paperwork and ask for a land loan. You can also choose to wait until you've finalized your house plans and picked a contractor before seeking a loan, but in the interim someone else might come along and purchase the land.
In most cases, you'll be able to roll the remaining portion of your land loan into a larger construction loan, giving you ample time to purchase the property, then consider all your design and contractor options.