I want to build a new home! Now What?
The decision to hire a contractor to build you a custom home from the ground up - rather than buying an existing house - isn't always an easy choice to make. But if you're willing to commit the appropriate amount of time, energy, and resources needed for this type of project, then the payoff will be well worth the effort!
The decision to hire a contractor to build you a custom home from the ground up - rather than buying an existing house - requires a large commitment of time, energy, and resources...but the payoff will be well worth the effort!
Taking the First Step: A Feasibility Review
A feasibility review is an essential tool that allows you to determine answers to 4 major questions:
1. What is my budget?
This is the most important question to address before making any other decisions as the answer will be the foundation everything else is built on! Start by answering these questions, then familiarizing yourself with some basic information about the type of loan you will need.
2. Where do we build our home?
This answer is extremely important because it may determine your actual options for size, style, amenities, and overall budget.
3. What will our house look like?
Basically, you want to narrow down your options to answer 'How Big, How Fancy, & How Much'.
4. What features & fixtures do we include?
You'll want to start considering many of the details of amenities that are included in your new home.
5. About how much will it cost?
Once you have answered the questions above, you should have a general idea of the costs involved. Setting the budget parameters as quickly as possible will also help avoid making common mistakes like purchasing a set of plans for a house that you cannot afford (See Designing House Plans).
These preliminary answers will become the foundation for many important decisions in subsequent steps. Start learning more about the Basics of Construction Loans by reading our article. Then make sure you download our handy Feasibility Review Checklist that will help you keep track of your notes during the process. Keep in mind that the answers you derive in the feasibility review may turn out to be wrong, or you may simply change your mind. Again...that is perfectly alright...just stay flexible and it will all work out!
Here are a few questions past clients have brought up that may help spark your own internal questions:
- 1 story or 2? Would a 1 story with a cozy loft on the 2nd floor be enough??
- How many bedrooms do I need, and will I need more in the near future?
- Will I need an office or study? Is that even important?
- Do I like "open" floorplans, or do I like walls & halls?
- Speaking of open floorplans...do I want the kitchen to seamlessly join with a breakfast nook? Or to a dining area? Or both???
- Speaking of kitchens, will we ever actually be professional chefs who need industrial appliances? Or, can we settle on semi-pro gear?
- If we build a huge living room, is anyone even going to spend time in there??
- Am I a morning person, or do I hate waking up? And should that influence where the master bedroom is placed?
- If our 10x10 storage unit is overflowing, does that mean I should focus on having plenty of storage space?
- Do I love taking baths more than I love having an enormous shower?
- Is a formal dining room a wise use of space?
Navigate to individual steps using the summaries of each section below.
Start mapping out a path to building your custom home to determine your land choices and How Big, How Fancy, & How Much!
Where to live is a major decision. Learn about choosing the right land for your home with these Pros & Cons of rural land vs. a neighborhood lot.
It is now time to choose the style of your new house, so we compiled some of the popular home styles to help inspire your thought process.
When considering the general amenities of your new home, use this short-list of fixtures & features as a reference guide to spark your imagination.
You should select a contractor whose work aligns with your own vision of what you have for your home.
Discover expert insight on how you should go about creating floor plans and designing (or buying) blueprints for your new custom home.
Use this section as a handy reference guide to understand what to expect during the time-intensive process of bidding the work.
After receiving a written estimate from the builder, it is time to secure financing for construction. Find guidance & resources here!
You're almost there! Learn about your loan closing date, getting a date to start building, plus other final details of the journey!
Learn what is needed to determine if the land you choose is in a flood zone, how to request a determination, and how to mitigate the risks with building there.
Learn about the financing terms, payment structure and types of construction loans...plus the common documents needed to apply for a construction loan.
