Home building is the process of building a home, usually referred to as a “home” by those who will eventually live there or may now, after its completion. It is the act of arranging resources with the aim of building a home. The building of a home can take many forms. For the sake of simplicity, we usually refer to the various steps in the construction of a home as the “processes” involved in home building.
As part of this process, home builders must assess and finalize financing. For some buyers, financing is not an option. In this case, a builder may have to negotiate for financing on the builder’s behalf. As you make your search for a home builder, inquire about financing possibilities. You may find that there are lenders who will work with new home shoppers.
Home builders typically schedule two major meetings each year. These meetings are scheduled for approximately half an hour and should be attended by home builders, real estate professionals and other interested parties. Involve yourself in these introductory meetings. The goal of these meetings is to understand more fully your intended home and to plan your own remodel. During these introductory meetings, home builders learn more about the type of home they are building, including floor plans, square footage, number of bedrooms, bathrooms and kitchens, upgrades, materials and costs.
After making preliminary decisions based upon the market conditions during these introductory meetings, the home buyers begin to narrow down their dream home selection. In most cases, a buyer will select more than one builder to achieve his or her dream home design. A buyer will meet with several builders in order to learn more about each. At this point, it is possible that a dream home selection may have changed.
When deciding upon a home builder, it is important to discuss your custom home plans with the architect first. An architect can give you the perspective and experience necessary to create a design and plan that will meet your unique needs and desires. Custom home builders will typically have a website and/or blog where you can communicate with them easily.
Once the preliminary decisions are made, the home buyer usually begins to search for a builder. A good starting place may be the website of a national custom home builder. The National Home Builders Association (NHA) offers valuable resources that can be used by buyers. For example, if a buyer has decided on a specific number of bedrooms and bathrooms, NHA’s online Registry of Existing Homes can help locate qualified builders who offer custom home services with these specifications. When a buyer is considering a new home from a particular builder, it is important to interview that builder. The process is not simply a popularity contest; it is an opportunity to learn more about a builder and gain perspective about his or her work ethics, commitment to quality and customer service.
Once a buyer is interviewing prospective builders, it is important to discuss financing options. While most construction companies offer financing options through their own lending institutions, some manufacturers may require purchase loans. It is best to confirm that the buyer will be able to obtain funds from his or her own lender and that the loan amount is sufficient to pay for the builder’s estimate of the cost of building the new homes. Some manufacturers may also require buyers to use builder-owned homes as collateral for the loan.
A builder who has many years of experience should have no problem getting the buyer to commit to a project. However, when a new home buyer lacks experience, the buyer should seek advice from the seller about which builder to use. It is important to choose experienced construction financing companies. While construction financing companies can often be found in the phone book, it is better to find a company that matches buyer’s needs with knowledgeable construction financing experts. When asking for referrals, be sure to ask for a list of homes the construction financing company has worked on recently.