What Is Required To Build A Home (Part 1 – Planning Stage)

So, you have the perfect piece of paradise and you want to build your forever home on it. This is a great and exciting time! Let’s help break down the steps of what it takes to build a home. I will assume that the home is being built on existing property of the homeowner. There are many important steps that need to be completed before the first shovel of ground is moved. Here is a quick summary of what the steps typically entail.

Step 1. Understanding Any Restrictions, Regulations And Building Codes For Your Property.

These typically are set by local, municipal government, by deed restrictions or by HOA/POA. They typically spell out to different details of what can and cannot be built. It is important to understand and take these into account when you design your home to ensure compliance. This is especially important if you are financing with a third party or would like to sell the home in the near future. Much of these issues is controlled by a permitting process of some kind.

Step 2. Planning Your Home.

A good set of plans is critical for several reasons:

• To ensure that the home owner gets exactly what they want in a home. When it comes time to build the home, there will be no big disappointing surprises.
• A good set of plans will make sure all restrictions and regulations are going to be met. The plans will be required for any permitting process that might be required.
• If financing the build, the bank will require detail plans before they will start funding a project.
• If you spend time getting the plans exactly as you want them, there will be less likely “surprise” increase costs for change orders. It is always cheaper to make changes on paper then after the project starts.

Step 3: Planning For All Utilities

Utilities include everything such as power, water, sewage treatment, propane or natural gas lines etc. Knowing whether you have close water and power to the site will have a great impact on costs of your project.

Step 4: Acquiring Permits.

This varies significantly based on your location. It can be very simple with minimal permitting requirements. There is also the possibility of it becoming a very complex permitting process which requires many layers of regulators to approve.

Step 5: Planning and Securing Financing.

This could be as simple as paying cash for the new home (ideal, but many of us do not have the luxury to do) or going to a bank and lining up a construction loan.

Final Thoughts

One step that is not included above is selecting a builder or general contractor. You could wait and select the builder after all this is completed. However, you might find it necessary and helpful to select a builder at the very beginning of the process to help guide you through some of the more complicated steps. A builder usually has encountered all obstacles and knows how to work through them, saving you time, energy and money.  

Blog Written By Robert Kidnew

Edited by Neal Simons & Hannah Kidnew

July 21, 2025