Step-by-Step Guide

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Financing Approval

When building a house the first step is to figure out how much money you will be able to spend. You will want to contact your lending institute to determine this. This is called pre-qualification.

The financial institution will require the following:
- Previous year's W-2
- Employment verification
- Previous year's tax returns (if you are self employed)

Financing Information

Planning Stage

Now that you have been pre qualified with your lending institution you can determine what type of house you can build. Once you determine what you want to build you will need to develop a budget, choose your subcontractors and receive quotes from the subcontractors.

Make sure the plans are as detailed as possible. This will keep from any confusion between you and the subcontractor and also keep you from going over your budget.
After you have completed the budgeting process you can take your building plans and construction costs breakdown to your lending institute for final financing approval.

Builders Risk Insurance

Builders risk is a different policy than your homeowners policy. Check with your insurance carrier for policy and coverages. Builders risk will cover such events as theft, fire, natural disasters, etc..

Tips

Building Permit

Now you should have your plans and your construction financing secured. The next step is permitting. Contact your local building department to find out exactly what information is needed in order to obtain a building permit. It is advised that you check with the building department before you even clear your lot, as some places require you to have a land disturbance permit before you cut the first tree or move the first scoop of dirt.

Schedule and Order:

Water Meter to be installed (Call your local Water Utilities Department to find out what information is required).