What is the best advice about building a house...?

My husband and I own a house now, but its only 1 bedroom and we have a daughter who needs her own room now...shes 3, we are planning on buying property and we are thinking about buying it plus getting a little extra to get a well and electric put on the property and then paying that off first and THEN start building a house, but should we get a little extra and build a small living quarters in a shop/garage?!? I dont know what to do?!? Help please tell me what money advice you have on this subject bc i want to do it the smartest way possible w/o going into to much debt... okay thanks, any advice will be helpfulWhat is the best advice about building a house...?
Okay, first of all, YOU WILL NOT BE ABLE TO GET A LOAN LIKE THIS. Rural land /raw land loans are much harder to get becuase the market is not the same as it is for homes-- there are simply less buyers and land sits on the market for longer periods of time- even well priced pieces. its more of a risk for the lender.





99% of banks will require 10-20% down on vacant land. They're definitely not going to laon 100% and ten give you more money for development.





What you want to do is an all in one construction laon that would cover the land, development, and the house. THESE loans are easier to get because in the end there is a house on them.





Open up some of those free real estate for sale magazines or classified ads. There should be advertisements for ';Homes built on your lot starting at $40 sq ft!!'; Go visit several of these and price out reasonalbe floor palns, and ask for their list of banks/lenders that they work through.





Then go to the banks and get preapproved and find out your dollar amount.





A construction loan works fairly simiple- they give you 6 months to a year for the purchase of the property, development and building. During the time its being worked on, you pay interest only on the portion that has been paid out-- not the end dollar amount.





They will perform an appraisal that will tell you what your house will be worth when its done being built, and thats what they base the laon off of. So you'l know before its built if you're coming out ahead.