Are you dreaming of building your perfect home? Before you dive into this exciting journey, it's important to have a home building checklist to make sure you don't overlook any critical details. Building a custom home on your land is a complex process with many moving parts, and even a small oversight can lead to costly consequences.
In this blog post, we'll guide you through the essential steps of what not to forget when building a new home. By following this checklist, you'll be better prepared to tackle the challenges ahead and turn your dream home into a reality.
To begin, let's break down the three fundamental requirements for building a custom home on your land:
Land
Financing
House plans
Each of these elements involves several considerations and potential pitfalls. We'll explore them in detail to help you navigate the home-building process with confidence.
When it comes to building your custom home, the land you choose is quite literally the foundation of your project. Here are some factors to consider when evaluating a plot:
Before falling in love with a piece of land, you’ll want to make sure that residential construction is allowed in the area. Contact the local building or engineering department to verify zoning regulations and obtain the necessary permits.
You’ll also want to investigate whether the land is in or near a flood zone, floodway, or floodplain. Use FEMA's map search tools and consult with local authorities to do so. While you’re at it, look into the general drainage of the property, including any major drainages or culverts that could affect the usable area.
Electricity: Determine if electric service is available nearby and contact the local electric company or co-op to understand their process.
Water and Sewer: For rural properties, you'll likely need a water well and septic system. Research the costs associated with these options.
Gas: Contact local propane companies for cost estimates and tank options.
How will you get to your front door? You'll need to check what permits you need for creating a driveway from the main road. And don't forget to ask about culverts—big pipes that go under driveways for drainage.
You'll also want to consider how much work the land itself will need. If there are a lot of trees on the property, consider options like on-site mulching or burn permits to clear the way for your dream home. It's a good idea to set aside a little extra — maybe around 25% of your total land budget — for those unexpected surprises.
Remember, when it comes to land, if a deal seems too good to be true, it might be hiding some secrets. Always do your due diligence before making a commitment.
An key element in your home building checklist is securing the right financing. We’ve covered the ins and outs of construction loans in various other articles, so below you’ll find an overall checklist to use when figuring out which bank to use (or not use):
Before talking to a bank, make sure you know exactly how much much cash you’re comfortable putting down. Remember, you’re not just putting money down — you’re also paying closing costs.
In the same vein, consider what kind of monthly payment you'll be comfortable with when you convert your construction loan into permanent financing (a.k.a., your mortgage).
Be prepared to make decisions based on your annual income. If you’re employed by a company, that means your W-2 income; if you’re self-employed or own a business, that means the income shown on your tax returns.
Know your current equity in your land (if you already own it) or how much you plan to invest.. Remember, your budget should include the land and the house.
Other things to consider when talking to banks:
Look for banks with mortgage departments, as they may offer more competitive deals on construction loans to secure your mortgage business later.
Ask about "one-time close" options, which combine the construction loan and mortgage. This can potentially save you money on closing costs and lock in your interest rate early.
Remember that interest rates aren't the only cost to consider — factor in closing costs, fees, and title insurance when comparing loan options.
By thoroughly researching your financing options and including them in your home building checklist, you'll be better prepared to make informed decisions about funding your custom home project.
While online house plans can provide inspiration, finding a builder who specializes in "design/build" is often the best approach for a truly custom home. This allows you to create a home that fits your exact needs and eliminates wasted space.
To guide your home design process, create two essential lists:
Must-Haves: These are non-negotiable elements that your home must include.
Like-to-Haves: These are desirable features that you're willing to compromise on if necessary.
These lists will help you stay grounded when making decisions about your home's design and budget.
When creating your lists and discussing plans with your builder, consider the following:
One-story vs. two-story layout
Minimum number of bedrooms and bathrooms
Specific room sizes to accommodate furniture
Garage requirements (number of bays, size)
Outdoor spaces (patio sizes)
Layout preferences (e.g., master bedroom location)
Special features (laundry room access, mudroom, home office)
Specific room requirements (media room, game room)
Kitchen and bathroom features (double ovens, walk-in pantry, separate tub and shower)
The key to a successful custom home build is finding the right balance between your dreams and your budget. Work closely with your chosen builder to create a design that brings your vision to life while staying within your financial constraints.
Building a custom home is an exciting journey, but it requires careful planning and attention to detail. By following this home building checklist, you've taken a significant step towards making your dream home a reality. Let's recap the key points to remember:
Land: Carefully evaluate potential plots, considering zoning, utilities, access, and potential hidden costs.
Financing: Research construction loan options, prepare necessary financial information, and look beyond just interest rates when choosing a lender.
House Plans: Create must-have and like-to-have lists, consider key design elements, and work with a builder who can bring your vision to life.
The success of your custom home project largely depends on the expertise and trustworthiness of your chosen builder. They will be your partner throughout this complex process, so choose wisely.
If you're feeling overwhelmed by the prospect of finding the right builder for your project, don't worry – we're here to help. Download our free guide, "Finding a Builder You Can Trust," to learn how to identify and partner with a reputable, experienced builder who can turn your dream home into a reality.