Here are the steps involved when building a custom home:

First, begin with your budget. You need to decide how much you can afford to pay for your lot and for the complete construction process. The cost to build a custom house will be about $50,000 higher than a stock house. Of course this price can increase with the addition of extra features and it varies depending upon the size of the house. You will most likely need a construction loan and mortgage. Before you can begin construction on your custom home, you need to talk to your lender to see how much money you qualify for. Knowing the approximate costs will help you modify your building plans so you can properly meet your budget.

Second, select your lot. Building your custom home will be impacted by the lot you select. If you choose a suburban development site or a site with an ocean view, your construction costs will be dramatically different. The style of home you build will also be altered by the lot you select. You and your architect will need to investigate the soil condition, zoning and building codes, and the drainage factors involved with the lot.

Third, hire an architect and custom home builder. You will need a good architect to help you design your home and a custom home builder to carry out the design plans. An excavator and a surveyor will also need to brought in to ensure your lot is proper and the plans are in line with the codes.

Fourth, create your custom home plans. The architect and builder will meet together with you to create the plans for your custom home. This is the time when you want to specify window styles and other custom designs you have for your home. You will want to think about your future needs at this time and be sure to include all the plans for your custom home at this time.
Fifth, create your home builders contract. After you have followed through with steps 1-4, you need to get a written contract that has been signed and dated by the builder or contractor and the architect or designer. The home builder's contract will describe the complete project in detail and will include a listing of all the parts that will be included in the home construction process. You can amend the contract at a later time, but it is your responsibility to make sure all the changes are followed through properly. Before you sign your home builder's contract, make sure you understand every detail of it. Many builders will provide you with their own contract and have you blindly sign it. Be sure you thoroughly look over the contract and include information about insurance and liability.