Building a custom home is an investment in your future that can bring countless benefits. From the freedom of personal expression to the satisfaction of environmental responsibility, the advantages of custom home building are vast. This investment, while substantial, promises long-term value, both financially and emotionally.

Personalized Expression

One of the most immediate and tangible benefits of building a custom home is the freedom to design it according to your unique style and needs. Pre-built homes or cookie-cutter designs often fall short of meeting individual preferences or specific family needs. However, when you design your new home, you have full control over every detail, from the layout and materials used to the colors and finishes. This freedom of personalized expression ensures that every corner of your home reflects your taste and lifestyle, providing a sense of belonging that’s hard to achieve with a pre-built house.

Maximizing Functionality and Efficiency

Custom homes are designed to optimize space based on your lifestyle and needs, eliminating unused or wasted space. Each room serves a purpose, tailored to the needs of you and your family. Additionally, custom homes often come with energy-efficient appliances and systems, like HVAC, insulation, and lighting, which can significantly reduce your long-term energy costs. Building a custom home allows for the integration of these modern, energy-saving technologies during construction, leading to both environmental benefits and cost savings.

Long-term Cost Savings

While the initial construction costs of a custom home might be higher than purchasing a pre-existing one, long-term savings can make the investment worthwhile. Custom homes are built with your future in mind, reducing the need for costly renovations or adjustments down the line. Additionally, since you have control over the materials and appliances used, you can select options that are durable, low-maintenance, and energy-efficient, leading to significant savings over time.

Quality Assurance

When you’re building a new home, you can choose the builders, architects, and contractors you trust, ensuring high-quality work. You can select materials based on their quality and durability, which often isn’t an option when buying a pre-built home. This level of quality assurance can significantly increase your home’s lifespan, reducing long-term maintenance costs, and ensuring the safety and durability of your home for years to come.

Emotional Satisfaction

Beyond the financial and practical benefits, there’s an emotional aspect to consider when building a custom home. The joy of seeing your dream home come to life, designed to your specifications, is immeasurable. Living in a home that’s a true reflection of your style and preferences brings a unique sense of satisfaction and contentment that a pre-built home may not provide.

Building a Custom Home is an Investment

Building a custom home is an investment that goes beyond the initial financial outlay. It’s an investment in your future, in a lifestyle designed just for you, and in a home that brings comfort, satisfaction, and security. While it requires planning, patience, and possibly a larger upfront cost, the long-term benefits make it an investment worth considering.

The benefits are numerous and significant. They are not just about having a roof over your head; they’re about creating a space that is truly yours. So, if you’re thinking about your next home, consider the value and benefits that come with customization. It’s a decision that can bring you a wealth of benefits, tailor-made to fit your lifestyle, needs, and dreams.

In the realm of real estate, the phrase “building a custom home” is synonymous with freedom, functionality, and financial wisdom. It means crafting an environment that nurtures your well-being, supports your lifestyle, and allows your personality to shine through every brick, every tile, and every paint stroke. It’s an investment in quality living, in a home that grows with you, adapts to your needs, and stands the test of time.

Remember, your home is more than just a property; it’s a sanctuary, a statement, and a space that’s uniquely yours. The benefits of building a custom home make it an investment that’s truly worth every cent. It’s a journey of creation that ends with you opening the door to a home that’s been designed with one person in mind – you.

Ready to build your custom home on Lake Keowee? Take the first step and contact us today.

Are you interested in the current trends of custom home building? As the industry evolves, new trends and innovations are constantly emerging. We’ve compiled a list of the most exciting developments to watch for in the future of custom home building. From sustainable materials to smart technology, these trends are set to change the way you envision your dream home.

Embracing Eco-Friendly Materials and Techniques

As environmental awareness grows, the custom home building industry is adopting more eco-friendly materials and techniques. This shift is driven by both consumer demand and government regulations, encouraging builders to prioritize sustainability. Here are some of the most popular eco-friendly materials and techniques to consider when designing a custom home.

Recycled and Reclaimed Materials

By using recycled or reclaimed materials, builders can reduce waste and minimize the environmental impact of new construction. From reclaimed wood to recycled metal, these materials add character to your custom home while also being environmentally responsible.

Energy-Efficient Windows and Doors

High-performance windows and doors are designed to reduce heat loss in the winter and prevent overheating in the summer. This results in reduced energy bills and a more comfortable living environment.

Solar Panels and Renewable Energy

Harnessing solar power through photovoltaic panels or other renewable energy sources can reduce your home’s reliance on fossil fuels, lowering your energy bills and reducing your carbon footprint.

Integrating Smart Home Technology

Another trend shaping the future of custom home building is the integration of smart home technology. By incorporating advanced technology, you can make your home more energy-efficient, comfortable, and secure. Here are some popular smart home features to consider.

Home Automation

With home automation systems, you can control lighting, heating, cooling, and other systems with a touch of a button or even voice commands. This allows for improved energy efficiency and convenience.

Smart Security

Smart security systems use sensors, cameras, and other technology to monitor your home and notify you of any suspicious activity. Some systems also allow for remote access, giving you the ability to monitor your home from anywhere in the world.

Energy Management

Advanced energy management systems can help you monitor and optimize your home’s energy consumption. These systems provide valuable insights into your usage patterns and offer suggestions for improvements, ultimately reducing your energy bills.

Focusing on Health and Wellness

As the importance of health and wellness becomes more popular, custom home building is also adapting to prioritize these aspects in new construction. The following are some trends in this area.

Indoor Air Quality

Improving indoor air quality is a top priority for many homeowners, with custom builders incorporating advanced air filtration and ventilation systems to provide cleaner, fresher air.

Biophilic Design

Biophilic design focuses on incorporating natural elements into the built environment to improve occupants’ well-being. This approach can include the use of natural materials, natural light, and indoor plants to create a soothing and healing atmosphere.

Home Gyms and Wellness Spaces

Many homeowners are now prioritizing dedicated spaces for fitness and wellness within their custom homes. This can include home gyms, yoga studios, or even meditation rooms, allowing you to maintain a healthy lifestyle without leaving your home.

Flexible and Multi-Functional Spaces

In response to the growing need for adaptable living spaces, custom home building is placing a greater emphasis on flexibility and multi-functionality. As work-from-home arrangements become more common and families seek ways to maximize their living space, the following trends are becoming increasingly important.

Open-Concept Living

Open-concept floor plans create a sense of spaciousness and allow for easy adaptability. They facilitate better communication and social interaction among family members while providing the flexibility to reconfigure the space as needed.

Multi-Generational Living

Custom homes are increasingly being designed to accommodate multi-generational families. This can include features like separate living quarters or dual master suites, allowing extended family members to coexist comfortably.

Convertible Spaces

Homeowners are seeking spaces that can easily transform to suit their changing needs. For instance, a spare bedroom might be designed to function as a home office, guest room, or even a home gym with the right furniture and layout.

Emphasizing Outdoor Living Spaces

Outdoor living spaces have become an essential component of custom home building, with homeowners prioritizing the connection between indoor and outdoor environments. By extending the living area outdoors, homeowners can maximize their living space and enjoy the beauty of their surroundings. Perfect for lake living! Here are some popular outdoor living trends.

Outdoor Kitchens and Dining Areas

Outdoor kitchens and dining areas allow homeowners to cook, dine, and entertain al fresco, making the most of their outdoor space.

Covered Patios and Decks

Covered patios and decks provide protection from the elements, allowing you to enjoy your outdoor living space in various weather conditions.

Landscaping and Gardens

Thoughtful landscaping and garden design can elevate your outdoor living experience, creating a serene and inviting environment for relaxation and enjoyment.

As the future of custom home building continues to evolve, staying informed about these trends can help you create a home that is not only stylish and comfortable but also environmentally friendly and future-proof. By incorporating sustainable materials, smart technology, wellness-focused design, flexible spaces, and inviting outdoor living areas, you can build a custom home that meets your unique needs and reflects your vision for the future.

When it comes to building a new home, there are two main options to choose from. You can either buy a pre-existing home or have one custom built. While pre-existing homes can be more convenient, custom built homes offer a range of benefits that cannot be matched. We will discuss some of the advantages of choosing a custom-built home for you and your family.

Primarily, custom built homes are tailored to your exact needs and preferences. You have complete control over the design, layout, and features of your new home. This means you can create a space that perfectly fits your lifestyle and meets all your requirements. For example, if you love to cook, you can design a kitchen that has all the features you need to make your culinary dreams come true. Or if you work from home, you can design a dedicated office space that meets your specific needs. When you choose a custom-built home, you can truly create your dream home.

Energy efficiency in custom built homes

Another benefit of custom built homes is they can be designed to be energy efficient. When you build a custom home, you can incorporate energy-saving features like solar panels, geothermal heating, and energy-efficient windows and doors. These features can help to reduce your energy bills and make your home more environmentally friendly. Additionally, building a custom home allows you to choose materials and products that are sustainable and eco-friendly.

Higher quality construction

In addition to being tailored to your needs and energy-efficient, custom-built homes can offer better quality construction. When you build a custom home, your builder has control over the quality of the materials and the construction process. You can choose high-quality materials and work with experienced builders who will ensure that every aspect of your home is built to the highest standards. This can result in a home that is more durable, longer lasting and requires less maintenance over time.

Increased property values

Another advantage of custom built homes is that they can increase your property value. Because a custom-built home is designed and built to your exact specifications, it is often more unique and distinctive than a pre-existing home. This can make it more desirable to potential buyers if you ever decide to sell your home in the future. Additionally, because custom homes are often built with high-quality materials and construction methods, they can hold their value better over time.

Custom built homes are unique

Finally, custom built homes can provide you with a sense of pride and ownership. When you build a custom home, you participate in every step of the process, from design to construction. This can create a strong sense of attachment to your home and a feeling of pride in what you have created. Additionally, because a custom-built home is designed to your specific needs and preferences, it can feel more like a reflection of you and your family.

There are many benefits to choosing a custom built home over a pre-existing one. Custom built homes are tailored to your exact needs and preferences, are more energy-efficient, offer better quality construction, can increase your property value, and provide a sense of pride and ownership. While building a custom home may require more time and effort than buying a pre-existing one, the benefits are well worth the investment. If you are considering building a new home, we highly recommend that you consider a custom built home.

The final phase of our process is when we’ll meet with you to discuss financial funding arrangements and review accounting procedures. We believe in total transparency. You will never be surprised when it comes to the financial details of your new home construction. You’ll see how your money is spent in real-time and a third-party accountant signs off on any spending each week to ensure oversight.

Financing the build of a custom home is different than a classic bank mortgage to buy an existing home. With a typical mortgage, the buyer purchases an existing home and the land on which it was built. If you’ve purchased a home in the past, you know that a classic mortgage is typically straightforward regardless of the loan type you may choose. A construction loan is the type of loan you will need to build your custom home on a piece of property that you own or are buying.

Financing Steps for Construction Loans

The three main transactions in custom home building are the lot purchase, the construction of the home itself, and the mortgage. For custom home construction, you will secure separate financing for each although various lenders may package certain types of loans together.

Generally, the first step is to secure a loan to purchase your home site. Second, building the new home is financed through a construction loan which is structured to release periodic disbursements to pay for the various phases of construction as the house is being built. Lastly, a mortgage will be secured for the completed home.

Step 1: Unimproved Property Loan

Unless you already own a piece of land outright or if you plan on paying cash for the property, the first type of loan you will need to secure is an unimproved property loan, available from a variety of financial institutions. The price of land and the interest rate varies depending on the value and location of the lot. As with most other loans, the size of your down payment will affect the terms of your unimproved property loan.

The closer to an urban area, the more expensive the land is likely to be. Consider various factors when searching for a lot including how close it is to a city, the potential value in the coming years, and local laws on land use and zoning. You will need to close on the lot before construction can begin.

To qualify for an unimproved property loan, the lender will ask some specific questions, like how much you can provide as a down payment, your annual earnings, the total cost (principal and interest) of the loan, its duration, and your financial history. A higher down payment may be required than for a traditional mortgage loan.

Step 2: Construction Loan

If your plan is to finance your custom home build, you will need to secure a construction loan. Construction loans are specialized and aren’t available at every bank. A reputable custom home builder will guide you through the process and may be able to help you secure the loan.

Construction loans are usually 12-18 months in duration depending on the size of the build and may require a down payment of 20% to 30% of the total loan.

The Different Types of Construction Loans

A construction-to-permanent loan, also known as a single-close loan, is a loan used to finance the cost of purchasing the lot, building a custom home, and later serves as the mortgage on the home once construction is complete. This type of loan is good for borrowers who want to build a custom home on a lot of their choosing and use a custom builder of their choice.

A standalone construction loan is a short-term loan that is secured to fund the construction of a custom-built home. Once the construction is complete, the loan must either be paid in full, or you must apply for a mortgage. The lender that provides the financing for construction but not the mortgage will likely want evidence of pre-approval of the permanent mortgage prior to approving a construction loan.

Step 3: Mortgage-Based Loans for New Construction

Once the construction of your new home is complete, you will need a mortgage, a permanent loan, for the completed home. If you took out a construction-to-permanent loan, it won’t be necessary to pay another set of closing costs. Mortgage-based permanent loans are the typical loan that most people use to buy a home.

Difference between a Traditional Mortgage and a New Home Construction Loan

A traditional mortgage will provide long-term financing for a home that already exists. The home is used as collateral to secure the loan. The loan period can be up to 30 years and the borrower will make payments towards the principal and interest for the entire length of the loan. It’s a best practice to shop around for a mortgage. There may be differences in rates and some mortgage providers charges higher upfront fees than others.

A new home construction loan, however, doesn’t have an existing home to use as collateral. This type of loan is a short-term loan for the time it takes to construct the home. Without a completed home the financial institution can use as collateral, most lenders require the homeowner to put in the required 20%-30% equity in the beginning before the loan proceeds are utilized. The custom home builder that you choose will need to be approved by the financial institution handling your construction loan. The builder must prove creditworthiness and have a history of completed homes.

 

Once the loan is secured, construction can begin. Funds from your lending bank are disbursed as needed by the builder instead of being granted all at once. This way, the customer only pays interest on the loan proceeds as they are disbursed rather than the full amount of the loan. Disbursements are called draws and the lender will ask an inspector to verify that various milestones have been met before the next draw is approved. Total Quality Home Builders will ensure that milestones are met and that all subcontractors and suppliers have been paid.

Securing financing prior to building a custom home provides the security of knowing there will be funds available throughout the entire construction process. As with any loan, you and your bank are taking on risk so be sure to partner with a reputable builder. Total Quality Home Builders will help you through the process of obtaining the best financing possible for your dream home.

New home construction is typically one of the largest investments most people will make in their lifetime. One question that we’re asked time and time again is “How much does it cost to build a new house?”

During our previous processes, we’ve determined the major details of the home, including the number of rooms and size of the house, the architectural design, amenities, the septic system, and the orientation of the home on the lot. Each step will have an impact on how your home will be designed and built, and the final cost to construct from start to finish.

Once the final on-site layout is complete and approved by all parties, Total Quality Home Builders will provide a good faith estimate for review and approval.

New Home Construction Loan Versus the Traditional Mortgage

A construction loan differs from a traditional home loan. With a traditional home loan, the borrower makes a down payment, takes possession of the property, and makes a monthly mortgage payment to the lender. With a construction loan, the borrower is asking the lender to estimate the value of a property that does not yet exist and then lends you money to create it. The risk to the bank is much greater, so there is caution when lending funds for new home construction.

Final Costs of Your New Home

The final cost for new home construction will depend on where you are building and the readiness of your lot, among other things, but it also depends on “premiums” – the differences in finishing both the exterior and interior of the home. There is a base price per square foot that includes basic exterior and interior elements, but that price will increase should you prefer top-of-the-line, or “premium” elements.

Good Faith Estimate

As we go through the process of planning your new home construction, we will document estimates of each cost, including the formulas used, so you can clearly see how elements are budgeted. You then have a better idea of what premiums you can add in, and how much each premium will add to the cost of the home.

Once we have all the details, we’ll establish a budget and create a Good Faith Estimate for your approval. Our process is 100% transparent and our goal is to minimize surprises during the construction process.

Next up in Part 12: Homeowners Association Application, we’ll discuss the process of applying with your community Homeowners Association and the rules and regulations for new home construction.