Last week we talked about deciding on if a mortgage lender or mortgage broker was right for you. Now it’s time for the real fun to begin. Today we are going to learn more about the home building process.
I was blessed enough to be able to build my first home, and it came with a lot of ups and downs. So today I am going to go through the steps you need to know before you build your first home.
Like always if you would rather watch the video for this blog it is listed below.
Building vs Buying
Before we start we have to take a step back and evaluate if we should build a new home, or purchase a pre-existing home. This is entirely up to your discretion and is based on your needs.
If you are not in a rush to be in a new home then you should consider building as it will take some time to finish this newly built home. However if time is of the essence, whether it is a growing family, moving to a new state, or your lease is going to be up in a few months. Then you might need to consider purchasing an existing home.
If you want a fully custom, made to your liking, home then going the building route will allow you the most say so to how things are done in this home. If you don’t mind living in someone else’s “dream home” or the glitz and glam doesn’t really appeal to you then a pre-existing home is the way to go.
Find the Perfect Lot
So now that we have decided to move in the direction of buying, the next task on the list is to find the perfect lot to build this amazing home.
When researching a lot to purchase there are alot of things you can consider. The most important is the location of the lot. This drives decisions more than anything else. The second being the cost. Once you find a lot in a great location for a good price you should jump on it.
When purchasing a lot you should also make sure there aren’t any liens on the property that could hinder you building. As well as making sure the zoning is correct to build a home to the size that you want.
Type of Home
This is the step in home building that most people think about. They have this pinterest board full of ideas on what their potential home will look like. To take a more methodical approach you will have to contact an architect to design the plans for your home.
Nowadays you can even purchase home plans from someone online after you have viewed what the home looks like on their site. This isn’t uncommon as the architect has already done the work ahead of time. When you do get the plans you can always tweak certain things to make it to how you like it.
Many factors come into play here. Such as having multiple levels, having a large living space, making sure that you don’t waste any extra space, etc. So even though it costs extra money to use an architect, that may be the best route.
Have a Budget
This is one of the most important pieces of building your own home. Home prices have continued to rise over time and you don’t want to be in the position of wanting more than your pockets can handle.
This is where getting preapproved really pays off. That way you know how much the bank will loan you. When you do get your pre approval number make sure you don’t tell your builder the max number, leave some wiggle room in there just in case you need it. Ultimately something will happen and you want to be prepared for it.
Besides getting preapproved you can pay as you go. This means you pay for your home up front. Most people don’t do this as it will delay the building process and can leave your unfinished home looking like an eye sore to the rest of the community. The positive of paying as you go is when your home is finished you won’t owe anybody as you have paid for the entire house.
Find a Builder
There are a lot of ways to go about this, and no one way is better than the other. The tried and true way is to ask for referrals from people who just built their home.
A builder being in real estate has an advantage, as all of their work is put on display. So when you drive by certain homes, pay attention to the small details and pick out some things you like. You may be able to find who built that home online or by asking the homeowner. The flip side is once you get a recommendation drive by some of the homes that the builder has built in the past year.
You could contact your local real estate agent as they should have great contacts with people in the building community. If you need help finding a real estate agent then check out the previous blog on finding the best one for you.
In most major cities they have a builders association that is local to that city. If you contact them they should be able to provide you with a list of the current builders in your area. And lastly if all else fails you can go to the real estate section of your local newspaper.
Actually Building the Home
This part of the building process is the most fun and also the most nerve wracking part. When you are building your home, you want to make sure everything is correct from excavating the land all the way to your final walkthrough. So I am going to give you a quick rundown of each major part of building your home.
Land Prep – This is usually the first step in building anything. They are making sure that everything is leveled and that the ground is prepared for the foundation.
Foundation – This can either be poured concrete or placing cinder blocks at the base. This is important as the foundation sets the tone for the rest of the home. The foundation is also checked by an inspector before the rest of the home is built.
Preparing the Frame – This is when they put up those wooden studs all around the house. This step is crucial as these are considered the bones of the home. If something is off here, point it out before they start putting sheetrock up. By this time the roof should be up and the house should be wrapped in waterproof material.
HVAC/Electrical/Plumbing – When the doors and windows are installed that is when all of the inside work takes place. From putting in extra plumbing to making sure all of the wires are correct for electrical. This all happens after the home is considered “Dried In”. This also requires an inspector to come out and ok everything.
Insulation and Drywall – Most insulation goes in the outer walls of the home, between studs, and in the attic. After these are in place the drywall is put up and the home really starts taking shape. Then the painters can start doing their job.
Finishes – This is when most of the features are added to the home. Lights, Countertops, Cabinets, Bathtubs, Driveways, and Landscaping. The last thing that most builders do is put the flooring together. They do this last so that other contractors wont dirty up the carpet or hardwood floors while they are working. This is the fun part as you are deciding on what type of personality the home will have.
Final Inspection and Walkthrough
This step is important as it’s the final step before actually owning your home. I detailed more about this in a previous blog a couple weeks ago. But after the inspection is passed and the walkthrough is completed all you have left is Closing.
Closing
This one is pretty much self explanatory, but I am going to cover this in a future blog in a couple of weeks. Get ready to sign a lot of paperwork.
Rob’s Opinion
This is going to be one of the biggest decisions of your life and I want to make sure that you fully understand everything that is going to take place if you choose this path.
I hope the things in this blog will go on to help you with building your first home. If you have taken something away from this blog please comment down below. If you have any tips or experiences that you would like to share with others please comment them down below as well. Like always if you have any questions for yours truly please reach out.
