Talk to your bank. You have to jump through a LOT of hoops to be able to tear down the asset securing your loan, plus get another loan to build new. That's a LOT of money to ask for. And one of those requirements is going to be an architectural design that makes sense with the lot and neighborhood.

Is there any way to remodel or add on to the existing home?

We did this same process in 2016 after a few false starts. Leading up to selling our other home we had several meetings with different builders to get a sense of who we would want to work with. We hired our builder before we even bought our tear down and he helped us know what would be possible on the lot. We bought the house with the intent to tear down but rented it out for a year while we met through design process. We chose a designer who did the architectural designs as well as interior designs. It took almost a year to get the design we wanted and then we submitted for permits. We conveyed to a construction mortgage and then had draws to pay for the build. Tue build took about 14 months once it started. There were bumps along the way and tons of red tape, some expected and some frustrating. We learned a lot about local bylaws. My biggest recommendation is to make sure you actually have a sense of your budget and are realistic. We were about 10% over but had room to be 20% over worst case. So still cost more than we wanted but within our means.

Sorry my spelling is atrocious from my phone! I cannot see what I’m writing in the comment box.

Well, you spelled 'atrocious' right.

Can always see the first line in the comment and then fly blind!

Hi, Maria,

I suggest your first call is to the local zoning and building departments to see if what you have in mind is permitted and what implications there may be for the project cost and schedule. Next, speak with lenders to determine if they'll lend money for a tear down/new build, and, if so, how much you qualify for. If they won't lend for your project, then it's game over unless you self fund the entire amount. If they will lend money, speak to a couple of builders to test whether the loan amount--plus any cash you have to contribute to the project--is realistic compared to the likely cost of the project.