The process of building a new home does not begin when the concrete is poured, and the first wall goes up. It starts long before then. Prior to construction, there are many decisions and formalities you must go through.

Here are the four main areas you will need to check off your list before the exciting stuff can happen.


When determining your budget, you will need to make sure you remain realistic. There are so many exciting factors to being able to customize your dream home, but you must be levelheaded about what you can and cannot afford.

Make sure to research the average cost to build a new home in your area. Of course, the size of the home you are building will affect this number but looking at the average cost per square foot will help to determine a ballpark range.

Make a list of what you absolutely need in a home and a second list of desires, but items that aren’t exactly necessary. This will help you to put together a feasible budget, and if there is wiggle room, you can start to incorporate additional items.

The loan process for a new construction home isn’t vastly different from an already built home, but you still need to research this process early on. And beware of banks who will try to lend you more money than you can afford.

Choosing your lot

This is the first step you must take before planning any part of the construction process. A general rule of thumb is to anticipate 20 to 25 percent of the cost of your new home to be contributed to the price of the land.

Depending on the lot you have chosen, you may need to use custom blueprints as opposed to stock blueprints in order to fit the design. It is also important to take into account that you will need to hire a professional to test the soil condition, drainage, and zoning and building codes.

Picking a plan

Most new construction homes are subject to stock blueprints, which means that the plan is already pre-created by that company or architect. These are also referred to as model homes. Think about it like car shopping. You are picking a particular model that works for your needs, not completely designing a car from scratch.

On the other hand, you are also able to custom design your floor plan as well. This is a more costly route but is a great option for those with a specific vision in mind.

Always keep in mind your plans for the growth of your family and lifestyle in the years to come.

Picking a contractor

When choosing the right contractor and team for your new build, make sure you are following these steps.

Just remember, these are the people who are, literally, building your future. Do not make a rash decision before researching, meeting, and comparing several different contractors.