In this article we're going to go over your options of what to do if you go over budget when planning your new home.

Everybody has their dream home, the place where they want to go to die in. It's complete with everything anybody could ever want, swimming pool, tennis court, plenty of land and enough rooms inside to house a small army. Then it comes time to have to pay for this new wonder home and you find that the budget you're allowed, based on the financing you're able to get, is nowhere near as much you're actually going to be able to spend. Your jaw drops to the floor and with it your dreams are shattered. What do you do?

Well, the choices to your disposal are not many. Assuming you're not going to get any more funding your only choice is to reduce costs where you can. But where?

The first place to start is with the actual land itself. Do you really need five square acres? Maybe you should see if you can purchase a smaller lot. In many cases this isn't going to be a problem. Naturally, this one change alone is going to have a huge effect on the rest of the building process. You may not have enough room for that tennis court in the back by the time your land is reduced in size. But this is the place to start. Land is expensive. Cutting back on it may just be enough to get you in under budget.

The next place to go is with the house itself. Your heart is set on ten rooms. Maybe it's time to see if you can do with nine, or even eight. Go through the plans of your home and see what rooms you absolutely need to have and which ones are more of a luxury. Obviously you need a kitchen, a bathroom, a place to sleep for each child and yourself, and of course a place for just hanging out. After you estimate the cost for those rooms you can continue adding on until you've reached the number of rooms you can safely add before going over budget.

After going over the actual number of rooms needed, go over the layout and structure of the home itself. If you're planning a two level home maybe shifting your thoughts to a ranch style would be a better idea as ranch homes are usually cheaper because they are on one level.

Then there is the plumbing, electrical and heating. Obviously there are going to be codes that your home is going to have to live up to. But that doesn't mean that you have to get the best of everything. See what areas you can cut and still have your home up to code.

If all that still leaves you over budget, the last thing to do is try to see if you can get additional financing. Maybe your bank has given you all it will. If so, there are other options. There's federal loans and if need be, selling off some assets, if you have, to raise the additional funds.

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Michael Russell
Your Independent guide to New Homes
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