Posted by Melissa Lynn Galland on Mar 21, 2018 8:31:00 AM
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As you’ve seen in our previous site development blogs, the custom homebuilding process involves a series of important steps that get you ever closer to your dream home. In our last blog, we discussed one of the most exciting stages, Stage 3, where the buyer gets to decide on a floorplan, make customizations, and select finishes, such as flooring and countertops. Making these choices helps to make your new house a home and is one of the biggest joys of going the custom homebuilding route.

But Stage 4 is just as important to the overall process. During this time, you’ll work with your builder to complete the contract for your new home. This is the stage that kicks off the actual construction process—and it’s a pivotal point for a homebuyer.

Let’s take a closer look at what Stage 4 entails, as well as your responsibilities during this time.

Completing the Contract

At the beginning of this stage, your top priority is reviewing the concept floorplan and submitting your approval. Meanwhile, your builder will review the document as well, ensuring that the floorplan you’ve chosen and customized will work for your budget, your property, and other factors.

Since this is one of the final steps before your builder begins construction, it’s extremely important that you closely review the final project budget. Look over the total project cost, which includes the price of the land (if you don’t already own it) and the cost of constructing the home and developing the site.

If you want to make additional changes to your floorplan, now is the time to communicate those tweaks to your builder. After this stage, making changes to your home’s design will require additional funds, so now is the time to make sure you have landed on the design you want and on a budget that you are comfortable with.

If the total project cost works for your projected budget, you’ll sign the documents, and they’ll get passed back to the builder. If, for some reason, the total cost is more than you’re ready to spend, you’re not obligated to sign.

Ordering an Appraisal

If you are financing the purchase of your home by obtaining a mortgage, you’ll also need to order an appraisal during this stage. An appraisal allows your mortgage loan company to ensure they are loaning you an appropriate amount of money for your new home.

To determine the value of the home, they will hire an appraiser to review your home’s building plan, cost breakdown list, spec sheets, and plot plan. They’ll also review comparable homes in the area and consider overall market trends to determine its current market value.

Appraisals can take anywhere from four to 10 days, so work with your lender to order one as soon as possible. That way, this step of the process won’t delay the subsequent steps in the homebuilding journey.

The Next Steps of Building Your House

Once you have completed your contract, you’ll move on to Stage 5. This stage involves several key steps, such as meeting your construction team, gaining permit approval, and having your full set of construction drawings finalized. This is when the process starts to feel very “real” for many homebuyers. After all, there are only a few short stages to go before you receive the keys to your dream home!

 

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