Building a custom home is an adventure that rewards solid planning and a creative imagination. Before you begin, however, there are some fundamental considerations to make. Here’s a closer look at what will significantly impact the construction outcome and life in the new home.

What to Think About When Building a Custom Home

1. Location

If you haven’t purchased a lot yet, carefully consider where you want to be now and in the future. If it’s a vacation home, look for a rural area with outdoor activities and privacy. If you’re building in the suburbs, find a lot close to your favorite shopping, dining, and entertainment.

Don’t forget to factor the future into your plans. If your goal is to have kids, research school districts before finalizing a location. In addition to education, it’s also smart to plan for a safe neighborhood with children and families the family can socialize with.

2. Size

When it comes to home size, think about the essentials. You’ll need a master bedroom, kitchen, storage, living room, and bedrooms for each of your current and future children. Next, start expanding. Include a home office, two-car garage, finished basement, and playroom. You may want a home theater, guest suite, or another unique amenity to nudge closer to your dream home. 

Each time you add a room or common area, be aware of the increase in square footage. The average home is 1,600–1,700 square feet, which should give you a baseline. If you’re inspired by a home in the area, reach out to the owner and ask about the square footage.

3. Budget

Now that you have an idea of the home you want and where you want it, start crunching numbers. You’ll have to secure a construction mortgage that funds various phases of the build. These mortgages have higher rates because there’s no asset—the house—yet.

Lenders generally look for a debt-to-income ratio that’s less than 46% and a credit score over 680. You’ll have to provide a 20%–30% cash down payment. These dictate the interest rate and loan amount because they promise the bank you can afford to pay and have a strong history of managing and repaying debts.

Consider your traditional mortgage next. Your monthly mortgage payment shouldn’t account for more than 28% of your monthly income or 36% of your monthly debt payments. This ensures you can comfortably pay for the home.

4. Builder

The right custom home builder will bring your vision to life. Look for someone in your area that has completed homes you like. This lets you know they’ll understand your ideas. Ask for proof of licensure and insurance when you contact them. An established builder will want to work with you and be communicative about pricing, construction, and deadlines through every step of the process.  

If you’re searching for a custom home builder in Millfield, OH, contact Thompson’s Absolute Construction. They’re backed by 10 years of experience in the area and complete a variety of projects. Whether it’s home remodeling, bathroom remodeling, a deck, or the house of your dreams, call (740) 249-5620 to schedule a consultation. Learn more about the company on their website.