Building a custom home is incredibly exciting and rewarding. With your input, a custom home designer will create a layout that fits your unique needs and desires. The process may seem overwhelming so some may prefer to look for a prebuilt home that fits their family well enough. And that’s fine! However, for those who prefer a house specifically built for them, we will make this manageable with a clear step-by-step plan.
In this blog, you’ll learn exactly where to start and what to expect during the custom home building process.
Step 1: Define Your Goals and Budget
The first step of building a custom home is to determine your goals for the custom home: size, style, must-have features and lifestyle needs.
To calculate what you can afford, your income, debts, and down payment are the deciding factors. What interest rate you can get for your mortgage will matter here as well because a lower interest rate can significantly affect your monthly mortgage payment. Getting pre-qualified for a home loan (more on that in the next step) can help you determine a budget but that’s not necessarily what you can afford. That’s what you qualify for in terms of borrowing power.
You can reach out to local builders to get rough estimates on construction costs and then validate those with local architects. Once you select a custom home builder such as Daher Construction, you can work with them to create a more realistic budget.
Step 2: Secure Your Financing
Financing a custom home typically involves a construction loan. A construction loan is a specialized loan that’s usually for 12–18 months and requires a down payment of 20–30%. During construction, you only pay interest on the amount you’ve used, and once the home is finished, the loan becomes a traditional mortgage. Not every bank offers construction loans, but a custom builder can help you find one.
While you can certainly fund building a custom home through cash if you have the means, it’s usually not recommended due to security concerns and potential complications with large cash transactions. However, if your custom home builder will accept it the methods of a cash payment are cashier’s check, wire transfer, or electronic funds transfer.
Step 3: Choose the Right Lot or Location
When building a custom home, the choice of lot is an important one. Consider and weigh factors like:
- Location
- Lot size
- Topography (potential foundation and design challenges)
- Neighborhood
- Zoning laws
- Utility availability
- Access to desired amenities
You will want to consult with your builder to ensure the lot can accommodate your plans and consider the potential impact on resale value.
Step 4: Assemble Your Team
It is extremely important to hire an experienced and highly recommended custom home builder. You also want someone with relationships with the most talented subcontractors, suppliers and vendors, and designers.
Here are questions you want to ask your general contractor/custom home builder:
- How long have you been building custom homes?
- Do you have a portfolio of homes you’ve built?
- How customizable is my custom home with you?
- What licenses do you have?
- Are you insured?
- What kind of warranty period do you have?
- Have you built the style of home I’m asking for before?
- What’s the average time your team takes to build a custom home?
- What makes you different from any other custom home builder?
- Do you perform quality assurance inspections during construction?
- Do you have testimonials from past clients I can view?
- Do you have references you can give me?
Step 5: Design Your Dream Home
This is where building a custom home starts to get really exciting! This part of the process will mostly be the work of the designer or architect you are working with. They’ll usually present you with a finished floor plan you can look at and make any changes necessary.
Do not be discouraged if there are changes you want to make. There are almost always changes.
Once you’ve settled on the floorplan, the designer will begin working on finished drawings to present to you. Depending on the designer, their finished design could include elevations, perspectives, or whatever you may need to visualize the home.
When building a custom home, prioritize the functionality and flow of your spaces. Think critically about how you’ll utilize each space.
Step 6: Obtain Permits and Approvals
Building a custom home in Missouri requires a building permit before the construction phase can begin. For new construction, building permits are issued by local municipalities.
You’ll also need:
- Zoning clearance – confirmation that your proposed construction complies with local zoning regulations regarding land use and building density.
- Site plan approval – a detailed drawing of your property showing location of house, driveways, utilities, etc.
- Grading permits – required if significant changes to land grade are needed.
- Septic system permit – required if you’re not connected to a public sewer system and need to install a septic tank.
- HOA approval – if your property is in a homeowner’s association, you may need their approval for design aspects of your custom home.
Step 7: Start Construction
It’s time to break ground and begin building a custom home for you and your family!
During this phase, you’ll want to have regular check-ins with the builder and they’ll have milestones in which you’ll review completed work.
Communication is key to a successful custom home building process. Always make sure before you show up that you have permission to enter the job site. This is for your safety, the builders’ safety, and simply good etiquette.
Your Dream Home Awaits
Building a custom home requires planning and patience but the end result is well worth the effort. A home perfectly suited for you and your family. The main thing to remember is to choose an experienced custom home builder with a portfolio you are impressed with and that you communicate well with.
Ready to talk about your vision for your new home? Call the home building experts at Daher Construction at 417-345-0398 and receive a guaranteed response within 24 hours!
