Your bank, your appraiser and your insurance company for your under-construction house are all going to want certain information.
Otherwise: you will Not obtain your loan, you won’t know what the house is worth to the bank or the insurance company and your project will come to a standstill before it even begins.
How to avoid this problem and have a smooth project? Hire an Architect to design your house. They can aide you during important communications with your bank, appraisers from various entities (like your bank) and your insurance company. Are you really prepared to defend your budget and what your project is going to cost to a bank underwriting officer or to a lending appraiser or to explain to your Builder’s Risk insurer why your house is costing what it is? You’ll be talking to people who have been at their jobs for decades. Do you really understand all the detailed materials and systems going into your house and why that makes it better and therefore, worth what you want to borrow from them and insure it for, with them underwriting your policy? If not, you better seriously think about engaging an Architect to design, detail, specify and help manage your new custom house project.
Having that Architect in your corner to deal with all these technically-oriented people can make all the difference in the world, when it comes time to deal with them. Not having an Architect can spell disaster. You need someone that can explain, in great detail, what is going into your house. So much so that they know More than all those underwriters, appraisers and insurance agents. Someone that can teach them a thing or two, and convince them that your proposed house is worth every penny of what you’re asking them to provide.
Why is this so important? If you can’t convince your bank to loan you the amount of money you need to build your house, you’re not going to get very far. If you can’t explain to the appraiser (from any source) that your house will, in fact cost what you’re requesting (or more), they will not report that to either a lender or other entity. If you can’t convince your insurance company that your home will be safe and sound and worth what you’re asking, they won’t insure it.
If you can’t obtain insurance, your bank won’t lend you the money. So: having someone to explain to these various technical/administrative people all the things that will make them understand the value of your proposed house will help grease the wheels of your project and make it proceed forward in a healthy direction.
All of these things typically occur during projects for which HOME ARCHITECTS ® provide services. They are used to helping their Clients handle these events with ease and success. Never: is the number of times they have not been able to convince their Clients’ banks, appraisers and insurance companies why their projects are worth what they cost to build and why those banks, appraisers and insurance companies need to agree with them and provide what their Clients need. This kind of horsepower and capability is priceless when required.