Custom Building; Step by Step
Step 1: Select Your Builder
Although interchangeable with the home site selection, many times your Builder is the first step and decision to make. We suggest that you begin by interviewing several builders who have been recommended to you by friends and associates. You must feel that others have had good experiences with these builders before you even start interviewing. Also, it’s important to view some of the builder’s work to make sure the quality and details are compatible with your expectations. After you’ve met with the builder and established that he is a candidate, ask the builder for a list of previous customers; and call a few. Everyone likes to talk about their home builder if you ask!
Choosing the builder first is a smart move that will pay dividends throughout the remaining steps of the building process.
Step 2: Selecting Your Home Site
By selecting your builder first, you gain the benefit of his or her experience in making decisions regarding the home site. The builder should also be an excellent resource for information and guidance in regards to the architect or plan designer (if necessary), and sources for financing.
Time and pitfalls can be spared if you consult with your builder on the home site decision. You don’t want to discover lot problems after it’s too late. Many times there are unseen issues with home sites that will drive costs higher than expected. Relying on an experienced builder for guidance in finding the right home site to suit your needs will help you avoid costly mistakes.
Step 3: Selecting Your Home Plan
To provide a home plan that truly fulfills your every desire for your new home, we begin with a “wants & needs” meeting where we can begin to help you narrow down the field from which to select your plans.
In many cases, we are able to use variations of plans we have built before or “stock plans” from local plan designers and architects. In some cases, the uniqueness of your needs will require the services of an architect or home designer. This obviously adds to the cost of your home building project, but when you look at the overall picture we feel the home plan is the most important part of the success of your building experience. The need to spend a little more money to get what you want in a plan is an important and small investment to make.
Most architects and designers are happy to include builders in the process of planning your home. The team of owner, builder and architect allow all three to comment during the design process. This can be extremely helpful to you as the plans are being drawn. Commenting on construction detail costs can help keep the home within your budget parameters as well.
Step 4: Financing Your Home
Most home buyers will need financing in order to purchase their new home. In most communities in our area only the builders are allowed to purchase lots. If this is the case, we ask that the home buyer secure a permanent loan commitment from their lender (we can provide lender recommendations as well if required). Upon the receipt of the commitment and down payment we will purchase the lot and begin construction using our construction loan. When the home is complete your permanent mortgage will help complete the purchase of the new home. The home mortgage community is now offering extended loan locks for buyers building their homes. That means that you can secure today’s mortgage rates for closing on your home nine – twelve months later.
In other cases, you may purchase the home site – in that case you will need to secure your own construction loan. Today there are very attractive construction loan programs that also allow you to convert automatically into your permanent mortgage when the home is complete.