The Pre-construction Process
Building a custom home is intriguing. You have an opportunity to be creative and make a statement through your choice of flooring, cabinets, wall colors, and even the smallest features. With the unlimited number of choices, timelines, and building stages, it’s also a process that might make you feel in over your head.
No worries, Tamark Homes will walk you through each step of the process: 1) selecting the homesite, 2) designing the house, 3) estimating the costs, and 4) financing the construction. You will schedule your initial consultation and complete a questionnaire to determine the basics: desired location, timeframe, number of bedrooms and bathrooms, square footage, etc. This will help jumpstart the custom home path.
If you haven’t secured financing, getting pre-approved for a construction loan is a great way to determine your budget, whether to journey towards a $250,000 or a $650,000 custom home.
Selecting the right lot to accommodate your needs is critical. Things to consider include:
Size of lot
Location in the community
Orientation of the property
Gated or non-gated community
Amount of frontage
Property tax rates
Proximity to flood zones and flooding history
This is where the fun begins, where your dream house is designed. Tamark Homes will schedule your design meeting with the architect designer. In developing the design, you’ll want to think about:
Architectural style: Craftsman, Ranch, Mediterranean
Foundation Types: slab or pier and beam
Exterior Finishes: doors, windows, roofing, brick/siding/stone, and decks/porches/patios
Interior Finishes: floor covering, cabinetry, countertops, lighting, plumbing fixtures, and trim packages
Extras & Upgrades: fireplaces, smart home technology, crown molding, wine cellar, gourmet kitchen, or specialized storage
Once these decisions are made, the architect designer will prepare two drafts. After the edits are made on the second draft, you'll be presented with a 3D rendering of the plan. This will allow you to visualize your home's exterior and interior before finalizing the plans.
Estimate the Costs
Now that the design decisions have been made, Tamark Homes develops the estimate, which determines the price of the home. Additionally, a new construction specification sheet is produced, listing the brands, features, and selections like the foundation type, flooring choices by room, and appliance choices. This is the time to make all necessary adjustments to ensure that the price aligns with your budget.
Once aligned, the purchase agreement is signed and the contract is created.
This is a critical turning point because if the work is not itemized in the contract, design plans or specification sheet, then it is not included. After construction has begun, any change to the design plans or specification sheet could affect the cost to build.
Finance the Build
Let's get financed! The financing and application process for a construction loan is different than that for a traditional mortgage. This is why defining your budget and knowing what you can get approved for is important in the planning phase of your custom build.
There are two types of home construction loans:
Construction-to-permanent: This is a one-time close loan that can combine the cost of the land and construction into one loan. With this type of loan, your lender pays your builder in installments as the phases of the build are completed. After finishing construction on the new home, the loan rolls over into what will be the borrower’s mortgage.
Construction-only: This loan type requires two closings, the first for construction and the second for the mortgage. The construction loan is a short-term loan that allows12 months for construction. When construction is finalized, the construction debt becomes your mortgage. Two sets of closing costs are required.