When you make the decision to build a new home, it’s important to plan ahead and budget for it. You’ll want to make sure you have enough money saved so you can afford the location, materials, floorplan, and upgrades that you desire. Use this house building budget guide to learn how much you’ll need to save and the steps you’ll need to take to achieve your financial goals.

Start with a strong financial foundation

First, begin by getting your finances in order. Your emergency fund should cover six months of expenses, separate from your homebuilding budget. This will give you a safety net during construction and protect you from unexpected life events.

Remember that paying down debt before starting your build will give you more flexibility with construction financing. It will also help you qualify for better interest rates. If you have any further questions about loan programs or down payments, please feel free to reach out to us! Our preferred lenders are excellent resources to connect with.

Let’s talk about PITI

Are you familiar with PITI components, or principal, interest, taxes, and insurance? These are a critical part of your ongoing housing costs. 

Research local tax rates early, as they vary by location. Set aside funds for move-in expenses like furniture, window treatments, and landscaping. Planning for these additional costs from the start helps prevent financial strain down the road.

Prioritize your options

As you start thinking about what your home will look like, try to map out what you can’t live without, what you’d like included, and what you don’t want. This will help you make well-thought-out choices when creating your homebuilding budget. 

Our Selection Gallery features flooring, tile, cabinetry, hardware, lighting, and additional options. While you explore your choices, our Gallery Specialists will help you stay within your budget. We encourage you to create a needs and wants list for personalizing your new home. Start by prioritizing your non-negotiables, then refer to your wants list for the remaining budget. This approach will help you spend your money most wisely relative to your budget. 

Partner with Berks Homes on your new build

Now that you understand the budgeting process for your new home, it’s time to put those plans into action. At Berks Homes, we specialize in building high-quality homes that provide lasting value for Pennsylvania families. Our experienced team will guide you through every step of the process and ensure that your new home remains within your carefully planned budget.

Are you ready to begin? Our Online Sales Consultants, Kelly and Chastity, are here to answer any questions you may have. 

For more details, you can also contact the Berks Homes Realty team at 484.772.2693.