Have you decided to build your own brand new construction home but aren’t sure what to expect? In this video, I’m going to explain exactly what you’ll experience when you decide to build your own house. We’ll detail everything from financing to inspections so you can prepare for your upcoming build.

Financing Your Project

When you’re trying to build a brand new construction home, the process is a little bit different than what you’re going to experience in buying a preexisting home. The first step is deciding how you’re going to finance this project. Are you paying cash, or are you financing your home with a mortgage loan? Are you getting a construction loan?

You’ll need to decide how to finance your project depending on what’s right for you. In most cases in Lubbock, you go to the builder. The builder is going to carry the construction loan, and then you only pay an earnest money deposit. After the house is completed, your mortgage company is going to pay the bill for the project on closing day. Once that’s done, you can then move in.

Construction Loan And Earnest Money

In some cases—especially on those superduper custom homes—the builder is going to require you to carry the construction loan. That means you need to go to the bank and get a construction loan, and the builder is going to build the house and withdraw the money from the bank every time they need it.

However, in most cases, buyers are letting the builder deal with the finances of building the house. When the house is ready, they get the mortgage and just pay for the house. After deciding how to finance your project, you’re going to want to think about the earnest money that you’re going to put down.

This amount depends on the builder that you choose; some builders need 1%, some need 2%, and I’ve seen as high as 10-20%. It really depends on who you choose to build your house. You’ll want to plan to have the earnest money upfront once you figure out your financial situation.

Finding A Builder And Setting A Date

The next step is to find a builder that will be the right fit for you. The builder is going to work with your situation and the way you want it to get things done. In Lubbock, we have over 150 registered builders that build houses for consumers. Chances are we’ve worked with all of them; if you don’t know which builder you want to choose, I’d be more than happy to sit down with you and see which one is the right choice for your situation and your family.

After you find out about your financing and choose your build, it’s time to get your calendar out. You’ll want to start planning for the perfect moving date for you. In new construction, it’s all about timing and planning. The average time in Lubbock to build a house from scratch from beginning to the end is typically anywhere from four to nine months.

This timeframe depends on the builder and the size of the house that you’re building. You want to be on target with your dates and start planning this long project so you won’t get stressed out down the road.

Picking A Neighborhood And Getting Started

The next step is to start looking for the right neighborhood to build a house based on your needs. Once you have a floor plan that’s suitable for you are your family—along with the style and finish out of your home—it’s time to start imagining that perfect home for you and your family.

After you get your plan finalized, it’s time for the builder to turn in your final plan to the city to get approval. This project probably takes about two weeks two to two months, depending on the builder and the time of year. Getting approval also depends on how busy the city is. As soon as you get approval, your builder is ready to start building.

It’s super important to know the entire process from beginning to end. You need to have good communication with your builder, which is another reason that you want to choose your builder carefully. Make sure they’re someone that you connect with on a personal level since you’re going to deal with them for six to nine months. Think of it kind of like dating someone for six months; it’s very important to choose the builder that is going to fit your personality and your needs.

Pipes, Framing, And Electrical

Once the builders start building a house, the first thing you’re going to see on your empty lot is the plumber. They’ll start digging holes, putting plumbing pipes inside of the ground. The next thing that you’re going to see on your lot after the plumbing has been approved by the city is the slab. You’ll see the concrete guy getting out there, pouring concrete over your lot.

After the concrete has been finished and is dried out, you’ll start seeing the framers start putting the walls up. This stage is really exciting because it’s fast; in a few days, you’ll see the entire frame is up. After the framework is done, the electricians are typically the next team on the project. They’ll get out there and start doing the hard wires for the entire house. You’ll see the wires for your plugs and light fixtures start running inside of the home.

Windows, Roofing, Fixtures, And Flooring

After the electrical is done, it’s time to put the windows inside of the house. Seeing all the windows all over the house is exciting, as the building is starting to look like a real home.  At the same time that electrical and windows are being done, the roofer is usually out there putting your roof on. You’ll start seeing shingles, which is even more exciting.

Now is the time for insulation for the house, followed by sheetrock. Painters will follow next, while an HVAC crew puts your A/C and water heater units in. Cabinet and trim teams will start putting cabinet and trim inside of the house, and at the same time, you’ll see the countertops being installed. During this period, your lighting and plumbing fixtures will be installed along with your flooring.

Finishing Your Home

Here’s the key when you get to the finish out. For some people it’s stressful, and for some people it’s exciting. You’ve got thousands and thousands of choices out there to choose your finish out, and you don’t know what it’s going to look like when the house is not even finished yet. Remember, all of these items look good—but you’re not the designer.

Here’s the key: you want to make sure that your finish out is already picked and selected before we get to this stage. You don’t want to delay construction because your stuff hasn’t been ordered yet. This is especially true with the COVID situation that we have. Everything is on backorder, and it takes months and months to get them here. You want to make sure that you already made your mind up about your finishes and have already ordered them.

Inspection And Walkthrough

Now that your home is almost completed, I suggest to all my homebuyers that they do an inspection. Yes, it’s a brand new construction home, and you might wonder what you need an inspection for. Well, here’s the deal: builders hire subcontractors to do all these jobs.

They’re hired from the roofing to the plumbing to the electrical work. Because they hire subcontractors to do everything, they don’t know if the job has been done 100% right. We do an inspection to assure you that your property is done and nothing is missing. This is crucial for any new construction, in my opinion.

After the inspection is done and all issues have been addressed, it’s time for you to walk through the entire house and look for cosmetic items. They call this step “blue taping.” They give you one of blue tape and you walk through the entire house. If there’s anything that is not to your liking, you can go ahead and put blue tape on it. The builder is going to make sure those items are fixed before closing.

Getting Into Your New Home

Congratulations! At this point, you’re almost done with your project. Now is the time to schedule closing with the title company and make sure your finances are ready to go. You’ll want to go get the key for your home and enjoy your new house.

I hope this explained the nine-month process that a majority of home buyers go through when building a new construction home.  If you have any questions about building a home or you just want to know if this is the right option for you, please reach out to me. We’ve done this plenty of time with tons of builders in Lubbock, and I can guide you on the best builder for you to hire.

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