How To Build A Custom Home While Saving Thousands Of Dollars

Many consumers dream of owning a custom-built home perfectly suited to their needs. Unfortunately, many people believe that such a dream is unaffordable. Yet, we can show you how to build a custom home within your budget. Clear-Cut Building has decades of construction experience for both residential and commercial projects.

Steps To Building A House From The Ground Up

You may think building your own house is complex and intimidating. However, when you break down the process into several stages. It becomes much more manageable:

• Budget
• Decide on a floor plan
• Buy your property
• Hire your contractor

Set A Budget

Any major investment, including purchasing or building a home, must begin with your budget. Similar to buying an existing home, you’ll need to know the monthly mortgage payment you can afford. This amount should include the real estate taxes and homeowner’s insurance. Knowing your maximum amount of payment will determine the total mortgage amount you can afford.

Pick A Floor Plan

Once you know your maximum mortgage amount, you can decide on a floor plan. This is the diagram showing the room layout and physical features from above. When choosing your floor plan, you need to know what the construction cost per square foot is in your area. Factors such as location and architectural design help determine this price.

Additionally, your building materials will affect your cost. When choosing materials, you’ll want to consider affordability, durability, maintenance, and architectural quality.

Buy Your Piece Of Land

Before you start construction, you need a place to build your home. Buying the perfect plot to build your home requires more than just the location and the beautiful view. You’ll also need to check the zoning laws and determine what utilities are available. Plus, find out if you have access via a public road or right of way. Furthermore, flood zones, drainage issues, and hilly land are features you’ll want to avoid.

Hire Your Contractor

Finally, you’re ready to choose your contractor. Most people hire a general contractor to build their homes. A general contractor oversees the construction of your home by sourcing materials and hiring subcontractors.

However, you can save thousands of dollars by eliminating the need for a general contractor by partnering with Clear-Cut Building. In some cases, you could see savings of 25% or more.

Clear-Cut Can Help Your Build A Home

When you partner with Clear-Cut Building, we’ll give you the guidance you need to act as your own construction manager. We begin with a review of your budget, plans, and material choices. At this time, we can alert you to any option that may delay your schedule or impact your budget.

Next, we’ll help you with a detailed cost estimate and your vendor selection. While you might not have thought of all the different types of suppliers you’ll need, we have. We can recommend all the vendors your need including lumber, plumbing, and flooring.

Then, we’ll guide you through the entire construction period. Our experienced team can help you with permits and scheduling. Plus, we conduct site visits throughout the construction process to ensure quality.

Finding Financing To Build A Home

Financing for building your own home is different from buying an existing house. With an existing home, a bank uses your home as collateral to secure the home. When you’re planning to build a house, the lender only has the land. Typically, the land is only a fraction of the total value of the completed home.

Generally, when you’re building your own house, you need to secure a construction loan. Just like traditional mortgages, you must undergo an underwriting process to see if you qualify. The lender will examine your income, credit history, assets, and liabilities.

Moreover, the lender will require some other documents concerning the building of your home. This will include building plans with descriptions of materials and your construction contract with the builder.

Unlike traditional mortgages, the lender will disburse funds in installments usually based on your progress. Usually, these loans are short-term, typically 12 months. Also, during this time, your payments will be interest only on the withdrawn amount.

Typically, lenders offer two types of construction loans, standalone or construction to permanent. With a standalone, you must obtain a traditional mortgage to pay off the construction loan. Whereas a construction to permanent will convert to a standard mortgage upon completion of your home.

How To Build A Custom Home FAQs

We want you to have the house of your dreams. Yet, building your custom home can seem overwhelming. Thus, we’ve compiled a list of commonly asked questions to help you make the best decisions.

How Long Will It Take To Build A Custom Home?

Usually, contractors will give an estimated time frame for completion because many factors affect construction. For example, the size and complexity of your design are within your control. However, you have no power over the weather or your town’s permitting process.

One of the biggest benefits of working with Clear-Cut Building is our expertise in this area. We can make suggestions based on your design and material choices to complete your home on schedule.

What Is The Cost For Building A Custom Home?

When you partner with Clear-Cut Building, we prepare cost estimates based on the decisions in the planning stage. We base your cost estimate on several factors:

• Architectural design
• Materials
• Land cost
• Utility hookups

What Is The Best Time Of Year To Begin?

Right now. Seriously. While it’s certainly true that there are better months for building, we can start planning. You can begin to decide on floor plans, materials, and vendors. Moreover, you need to apply for a building permit and choose your subcontractors. When you meet with us, we will map out a realistic schedule to complete your home.

How Do I Begin?

It’s easy! Call Clear-Cut Building at 336-602-3662 to set up an appointment for your no-obligation project review. We can show you how to build a custom home without skimping on your must-have features.