There are a lot of benefits to purchasing a used home. However, while they’re more affordable, you never truly know the history of the house. Furthermore, you may not be comfortable in a home knowing other families have lived there before you. 

Building a home, on the other hand, provides a solution to these types of problems. Designing a home also allows you to customize every aspect of the home to ensure it’s the best fit for you and your family. You can choose everything from where individual outlets are placed to how big your master bathroom is. 

However, before hiring contractors to start building a custom home, there are a few things you should consider. Keep reading for a quick guide on designing and building a home. 

1. Assess Your Budget

Recent studies show that 63% of Americans live paycheck to paycheck. Basically, at the end of each month, their bank account drops down to zero. Often, this happens because we bite off more than we can chew with mortgages, auto loans, and credit cards. 

Don’t make this mistake. Take an in-depth look at your budget to understand exactly how much money you want to spend designing a home. 

Monthly Payments

First, let’s talk about your monthly expenses. Owning a home entails several monthly and yearly costs. These include:

• Mortgage payments
• Property taxes
• Homeowner’s insurance
• HOA fees (if applicable)
• Home maintenance and repairs
• Utilities
• Services
• And more

You must account for all of these expenses to avoid getting in over your head. Moving into a new home is a wonderful experience for a family, but not at the cost of your financial security. 

Mortgage Pre-Approval

We recommend getting pre-approved for a home loan before sitting down with contractors to build a custom home. Just because you know how much you can afford to pay each month based on your own understanding, it doesn’t mean you’re qualified for that amount. Your home loan eligibility will depend on your credit score. 

It’s better to know how much you can afford before you start designing a home. You wouldn’t want to put a ton of work into a new home design only to find out you can’t afford it. If you don’t like your loan eligibility, spend a few months working on your credit score to get approved for better terms. 

2. Think About the Future

Next, when building a custom home, you must think long-term. For example, right now, you may only have one child, but in a few years, you may have two or three. 

Think about your future and that of your family’s. If you’re planning on having more kids, your home design needs to reflect that. It must be big enough for your family to grow into comfortably.  

You can design a floorplan, for example, with a build-in loft, but will it be big enough? You might have to extend it later or convert it entirely. Check out the article “Loft Conversion vs Extension: Which is the right one for you?” for more information on creating the right loft space.

Along the same lines, if you plan to have children, you need to think about the school district your home would fall under. Are the schools reputable and recommended by parents?

Additionally, think about any possible changes in your circumstances. For instance, if you’re up for a promotion that could take you out of state, building a home doesn’t make much sense. 

3. Consider the Location and Lot Carefully

As noted above, where you build a new home has a significant impact on your life moving forward. We already mentioned school districts for your children, but what about playgrounds and parks?

What about your proximity to work, shopping, and other staples in the community? Do you want to be in a thriving neighborhood or more secluded?

You also need to consider the natural dangers of the area. For example, are you in an area prone to flooding, falling rocks, or dangerous animals?

Finally, remember that the property you choose will affect the value of your home in the years to come. Is it in a desirable location? Is the neighborhood growing or in decline?

4. Create a Design That’s Best for Your Lifestyle

Designing a home gives you the unique ability to create a totally customized space. However, make sure you’re thinking about your personal lifestyle during the process. Don’t base your home design on someone else’s idea of the perfect house. 

If you like to entertain, make sure your kitchen and dining room are large and open spaces that can accommodate several guests. You may also decide to create a luxurious outdoor living space where you can have people over for barbeques and nights by the fire pit. 

If you work from home or spend a lot of time in the study, make an office area a priority when you design your floor plan. If you love animals and know you’re going to have dogs, make sure the property you choose has plenty of yard space to let him/her run and play. 

5. Find the  Right Home Builders

Building a custom home means finding a contracting company to get the job done. When choosing custom home builders, however, you must make your decision wisely. 

Remember, it’s not just about the money. If you pick the cheapest home builders, you’re likely to get the cheapest product.

Find the right home builder by:

• Getting recommendations from other homeowners
• Finding customer reviews
• Ensuring the legitimacy of the company (licensing, certifications, insurance)
• Looking at pictures from previous builds
• Comparing home warranties

Don’t feel bad about thoroughly vetting your options and getting quotes from several companies. It’s your house, your investment, and your life. Find a home building company that fits your needs.

Looking for More Tips on Designing a Home?

Building vs buying a home: which is better? 

Ultimately, it depends on your budget, your lifestyle, and your circumstances. If you do decide to build a custom home, make sure you follow the tips listed above for the best results.  

And if you’re looking for more, our website was created to provide as much information as possible for home buyers, home sellers, home builders, and real estate agents alike. Check out some of our other articles for more advice on designing a home, working with your builders, saving for a home loan, and more.