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.

5 Things to Know When Building a House

This is our first time building a house so I am not an expert, but I wanted to share some things we have learned and are learning along the way to hopefully help your house building journey go a little more smoothly. 

We are having a contractor build our house for us so this may be a little different if you are building your house on your own (props to you!) but I hope these tips will be useful to you! 

  1. Prepare Yourself 

Building a house can be a little stressful at times and it is easy to get impatient! However, it is important to trust the process. Our home build is going fairly quickly, but the amount of time can depend on your builder, size of your home, even the season you’re building in. It is important to prepare yourself for the timeline of the build but I promise it is worth it, because in the end you have a home that is EXACTLY how you want it! 

  1. PLAN….and Then Plan Some More

If you are building a house, planning is SUCH an important part of the process! When you meet with your builder to pick the finishes on the inside, have an idea of what you want in the house. My husband and I have the same style (THANK GOODNESS) but if you and your partner don’t, it can make the process a little more challenging. So have a plan of the color you want for your cabinets, what kind of flooring you want, paint colors, tile colors, etc trust me it is so important and will help the process to be less stressful. 

What I did was put together a “mock” interior design plan on Google Slides with my Pinterest Inspo pictures to help pinpoint my interior design style! I have a separate blog about that, and I will link it here for you. This helped us so much when picking out our finishes for inside and outside of our home, it was definitely a lifesaver!

  1. Take A LOT of Pictures

Pictures are nice to have to look back on if you want to put them in an album to have for a keepsake, but they are also helpful if you have any issues with the construction of your home. 

This can also be helpful later down the road if you have any issue with any of the wiring,plumbing, etc and you have a picture of where they are located. 

We take pictures of concerns we have during the build and send them to our builder for clarification, this can be helpful because it shows them what is going on rather than trying to explain it over a phone call.  

  1. If You Really Want Something, Do it Now Rather Than Later

One of the main tips my parents gave us was to get what we want now rather than trying to add it later. For example, we wanted laminate flooring throughout the house.(Because dogs haha and future kids).  It was a little more expensive to do that, but it will save us from ripping up carpet or vinyl flooring later and having to spend more money to replace it ourselves. This way it is also under the warranty of the home!

If you can swing it within your budget it is definitely worth it to splurge a little bit on something that you really want so you don’t have to change it and probably spend more money on it in the future. Trust me in a few years you will be glad that you did it!

  1. Visit the Build Site Often

This is my most important tip of all during the construction of your home! We trust our builder to do a great job on the home, but we are all human and make mistakes. Especially since Sub-contractors do a lot of the work on the home, things can get lost in translation. If you can visit the build site daily that is best, but if not I recommend going at least 3 times a week just to check the progress and make sure everything looks correct and that there’s not a wall where it;s not supposed to be!

Some houses will go faster than others but it is important to go check when everything is being framed to ensure your layout is correct. Another important stage is the final stages when the finishes are going in just to make sure your paint colors, cabinets, countertops and other interior finishes are what you chose. 

Building a house is one of the most exciting experiences, but it can be stressful at times! Don’t sweat the small stuff and be patient, it will all come together in time. Try to enjoy the process and to keep your mind busy you can always plan how you want to decorate the inside 😉

I hope these tips were helpful to you, and if you are building a house or have built one before please share your story or your favorite part of building in the comments! Until next time……

Riley Jo XOXO