10 Tips for Building Your Dream Home

A good way to manage this expense is to look at the draw schedule before you sign the loan agreement, and make sure the number of inspections is not greater than the number of draws. Another way to save is to consolidate a few draw schedule items into one site visit.

9. Carefully consider the loan structure. Once your house is built, your construction loan will convert to a traditional mortgage. But you will have to decide on the ultimate structure of the mortgage right at the beginning, when you apply for your construction loan. This presents another set of potential pitfalls. I explain how to avoid the six most common mistakes here.

10. Consider a spec home. If you've gotten this far, you might think you're in over your head. One way to find a great deal is to buy an already-constructed home. There is a major oversupply of newly built homes in many areas. A lot of people who speculated on real estate during the boom years are desperate to sell. With some effort, you just might find your dream house, already built, in a beautiful area, for a reasonable price. Your only problem then will be selling your current home!