This is the last segment of our “building a custom home” series. A lot of the anxiety that occurs during the homebuilding process can be eliminated by asking lots of question of your builder and doing some research before you ever start the process. That said, we will cover some of the areas to be vigilant about and some of the realities to be prepared for to help you better manage this process.
Since all custom home projects begin with financing, make sure that you have a thorough understanding on how your construction loan is structured. Keep in mind that this loan is needed to have the home built and will later be converted to a mortgage. In this day and age, you will have much more control over how the money is doled out to your builder. In the “good old days”, when a builder made a request, you could direct the bank to pay the draws to the builder. Now there are many more impediments before a draw is paid to your builder and you will be part of that process. So be sure to sit with your banker and have them explain all of the steps and make sure that their guidelines coincide with contract between you and your builder.