In this article we will go through the home building process step by step. This will be a quick overview of all the steps. For more detailed information, please download our 98 page free guide at the top right, and read articles on our site which detail the various aspects of home building. Many of these steps will be done simultaneously.

Home Building Process Step by Step: Economic Preparation

• Save Money for the Down Payment
• Clean Up Your Credit Scores
• Pay off Debt

Home Building Process Step by Step: Start a Dream Home Journal

• Record Research
• Record Brainstorming Ideas
• Record Selected Concepts and Design Features
• Record Your Needs Wants and Desires
• Record House Plans you like
• Record Room Sizes You Need
• Record Your Final Design
• Record Bids
• Record Materials Lists
• Record Home Builder Selections
• Record Loan Applications
• Record Home Loan Details
• Record Home Building Progress
• Photograph Home in all its Phases of Completion

Home Building Process Step by Step: Research

• Research Home Building Techniques
• Research Home Building Materials
• Research Brand Name Quality of Materials
• Research Materials Companies in Your Area
• Research On Line Home Plans
• Research Home Builders and Contractors in Your Area

Home Building Process Step by Step: Design

• Brain Storm
• Collect and Create Photos, Drawings and Diagrams of Brainstorm Ideas from All Family Members and Your Own Ideas
• Sort Ideas by Room, and Style
• Sort Exterior Ideas
• Decide on the Size of Rooms
• Determine Approximate Square Footage
• Find a Floor Plan Close to What You Want and Copy the Ad and URL. (Don’t order till you talk to the home builder)
• Experiment with Floor Plans using Home Design Software, and Computer Simulations

Home Building Process Step by Step: Consider Your Budget

• Determine Budget Based on 25 to 35 Percent of your Income and a Mortgage Calculator
• Estimate the Cost of Your Home as Planned
• Make Changes As Needed to Fit Home to Budget as Needed
• If it Won’t Fit Your Budget, Consider A Shell Home or A Smaller Home

Home Building Process Step by Step: Assemble a Detailed and Unified Plan

• Desired Building Materials
• A Floor Plan and Elevation You Like with URL to purchase
• Style and Color Scheme Preferences
• A Way to Present your Home using Home Design Software

Home Building Process Step by Step: Shop for a Lot

• Decide between Rural, Subdivision, Suburbs, City or Nearby Small Town
• Start Looking at Lots
• Do not Purchase till Your Chosen Home Builder Views the Lot

Home Building Process Step by Step: Collect Bids from 3 to 6 Home Builders or Contractors

• Select Home Builders after Extensive Research
• Make Appointments Only with Highly Recommended Builders
• Consider Hiring a Trusted Realtor To Go With You
• Remember that You are In Control, and You will Decide Who Builds Your Home
• Discuss Building Materials and Methods
• Show Your Home Journal, Especially Your Desired Home Plan, and Chosen Design Ideas
• Make it Clear that You Insist on Visiting the Job Site for Brief but Frequent Visits
• Make it Clear that You Will Not Sign an Arbitration Clause
• If they ask you to Prequalify answer Honestly – Bring Financial Information
• Collect Bids which have Detailed Materials and Labor Cost Lists
• Collect a Sample Contract

Home Building Process Step by Step: Compare Bids and Contracts

• Look over Materials Lists
• Look over Details of Contracts
• Look for Red Flags
• Consider any Differences in Materials and Quality
• Consider Ease of Communication with the Contractor
• Consider Language of the Contract
• Consider Builder Reputation
• Consider Price, but Not as the Most Important Aspect

Home Building Process Step by Step: Hire a Lawyer

• Have a Real Estate Attorney look over the Sample Contracts you are Considering
• Have him look over the Completed Contract Before Signing
• Ask him to explain any language about conflict resolution, and insure it does not contain an arbitration clause.

Home Building Process Step by Step: Learn About Interest Rates

• Find out about Loans and Interest Rates
• Talk to Loan Officers about Applying For a Loan
• Find out More about Building Loans and Mortgages

Home Building Process Step by Step: Striking A Deal

• Definitely Bring either a Realtor or a Real Estate Attorney to this Meeting
• Some Building Contractors Offer Interior Upgrades – Seem Disinterested
• Talk about Building Materials
• Don’t Agree to use their Lender Unless They Offer the Best Deal
• Don’t use Their Appraiser – Insure that your Appraiser is a Disinterested Party
• Get the Upgrades but Make No Concessions on Your Part
• Use your Ability to Walk Out to get the Upgrades you want
• Never sign an Arbitration Contract
• Be Nice but Drive a Hard Bargain

Home Building Process Step by Step: Construction Process

• Visit the Construction Site Regularly
• Short fifteen minute Visits Once or Twice a Week
• Bring a Cooler of Bottled Water and Drinks for the Crew
• Always be Nice to Subcontractors and Crew
• If you see Problems, Deal Directly with Your Contractor
• Record the Building Process with Photos
• Examine Workmanship and Get some Detailed Photos
• Explain that You are Photo Journaling the Process

Home Building Process Step by Step: Upon Completion

• You Move In
• You Have a Mortgage
• You Must Buy Homeowner’s Insurance
• Rest Easy Knowing That Your Home has been Built by Your Specifications

Be sure to research the details of all these steps in order to understand more. Download our Free 98 page guide, which will take you through the home building process step by step.

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