3 Ways To Financially Prepare to Build A House

If you are thinking about building a house, it can be VERY intimidating to think about. There are a ton of things running through your mind “How much will it cost?” “Can we afford to build a house or should we buy?” “Where do I even start looking to find land and a builder?”

There are a ton of options to consider when building a home. No matter what your situation is,  I have a few tips to help you get your ducks in a row and determine if building a house is the right decision for you and your family. 

So here are few things to consider when financially preparing to build a house:

  1. Set Your Budget  

This may seem like a no brainer but the first step is to set your budget for how much you want to pay for a house whether you are buying or building. Figure out how much you can pay for a house and how much you will be approved for by your bank and start there. 

 When building, depending on your payment options, you may have time to save a little money while the house is being built and this can give you a little bit of freedom to do those interior upgrades that tend to add up. When building it is better to have them do those upgrades now rather than trying to do them yourself later. But if you are a handy person, MORE POWER TO YOU!

  1. Pick Your Builder

This is the part that will vary the most. You can choose to go through a builder where you pick your floor plan and the lot price is figured into your house payment. This is usually common for housing editions or developments. (This is what we did!)

You might choose to buy some land, pick your own blueprint, go through an architect and contractor to build a custom home that is unique to you. You will have to factor in other fees for this and figure out financing with your bank and builder to determine your payment method. 

Or you may choose to build it completely on your own if you are handy and have the time.With this option you will have to talk about financing options with your bank and save accordingly for all of the building materials that come along with it! 


This is by far the biggest tip I have when it comes to building a house. You have to save up to put down earnest money, change orders, closing costs, furniture for your new home, potentially appliances if they aren’t included. 

These fees can vary person to person but I would say it is safe to have ATLEAST  $10,000 put back if you are considering building a home. This way you have a little bit of cushion to work with. AGAIN, this can vary from person to person. It may be more depending on the size of house you are building, how much you are required to put down on the home, the area you live in, etc.

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