Building a New Custom Home: Financing and Budget

Many people dream of building their own custom home, and the Sarasota/Manatee area is a popular destination. However, the decision to act on your dream can feel overwhelming, especially when considering financial concerns. Financing a home requires research, knowledge, and planning – here's what you need to know.


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Construction Mortgage Loans

When you purchase an existing home, many types of loans are available to you. However, you'll often have to qualify for a construction loan when building a new home from design to occupancy.

A construction loan is a short-term financing option designed to cover the expense of building or renovating real estate. Custom home builders often require these loans when working on their projects. The loans fund the construction process, including land acquisition costs, permits, labor, and materials. Although typically only a year in duration, once construction is complete, borrowers can refinance the loan or obtain an "end loan" to pay it off.

Calculating Your Budget

Determining your budget may seem intimidating, but it doesn't have to overwhelm you - just take things step by step. First, create a list of your expenses and income. Once you determine your existing budget, you can set realistic goals for what you can afford in the future. Once you have a handle on your finances, you can speak with lenders about loan options.

If you are planning on paying cash for your new home, it is still essential to understand your expenses and budget. When you work with a custom builder, you should understand their required payment schedule and how unexpected costs or delays will be addressed.

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The Bruce Williams Process

While most custom home builders approach the process of building a new home similarly, subtle variations can make your experience easier and more streamlined.

At Bruce Williams Homes, our decades of expertise have allowed us to perfect the custom home-buying experience. Your initial consultation will discuss architectural style, room function, lifestyle requirements, and budget considerations. We are happy to refer you to qualified lenders if necessary.

The Design Agreement allows the team to estimate a budget for your project as we meet with architects, develop conceptual drawings, preview custom showroom options, and assess mechanical systems. Once a budget is created, you will be presented with your unique proposal. If all looks good, an Agreement to Construct a contract is prepared, which permits the team to initiate the final design and engineering processes, set a construction schedule, and apply for required permits. During this stage, you will finalize your selection of finishes, including cabinets, flooring, and lighting.

After those steps are completed, a proposal for your final budget will be provided. An addendum to the Agreement to Construct will outline the ordering of materials and the construction schedule. A construction manager will oversee and manage your project, ensuring exceptional quality, safety, and cleanliness.  

Getting What You Want - Within Budget

One of the most significant benefits of working with an established and reputable custom home builder is their vast knowledge base.

Every homeowner comes to the table with many ideas and a picture of what they want, but they also typically have a budget that needs to be respected. Should the budget fall short, however, an experienced home builder can offer meaningful insight into achieving a similar aesthetic and function while staying on the financial track.

Experienced home builders understand how to maximize available funds and produce high-quality, unique houses that reflect the client's vision.

At Bruce Williams Homes, we are proud of our solid reputation as one of the region's best custom home builders. We invite you to browse the gallery of our latest projects, then give us a call.

Let us show you how to transform your available budget and financing into your dream home.

Create a new home for your best season yet

Choose a builder that truly values your vision, guards your budget, and is committed to building a relationship that lasts.
908 9th St. West
Bradenton, FLĀ  34205
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