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Home Building Process: Pre-Construction Home Planning

preconstruction homes pre-construction homes st louisThe first steps in building your custom home

Before putting the shovel to dirt, you will make a few important decisions that will shape the construction and design process. Hibbs Homes works closely with you to guide these decisions so your project is well planned and executed. Pre-construction is the first, and most important, part of the home construction process. During this phase, we plan your project and design your new home.

To begin pre-construction planning, we sign an agreement that can roll into your construction contract. The Pre-Construction Services Agreement isn’t a sales or construction contract; it is simply an outline of what services Hibbs Homes provides before the Construction Contract is in place.

After signing the Pre-Construction Services Agreement, we work with you, your architect, and your lender to create a framework that will help us plan your project. To make sure your home is built on-time and on-budget, we will:

    • Build an ideal construction team for your project.
    • Develop a custom plan for your home.
    • Detail your project’s specifications.
    • Determine allowances for selecting the materials and finishes in your home.

Our team will be there with you every step of the way, guiding you through these important, pre-construction decisions to make sure your design and plans align with your construction budget and project schedule.

Construction lending prequalification

Navigating the construction loan process for the first time can be daunting, and many of our clients have questions about the process. While there are similarities to a traditional home loan, construction financing has special considerations.

It is important to choose a lender who specializes in new construction and renovation financing because they understand the unique variables that influence loan determination.

  • How appraisals differ between projects.
  • How demolition of an existing home impacts lot value.
  • How construction materials and processes influence price per square foot.

Construction loans for high-performance homes have another layer of complexity because they have a different appraisal and valuation process, long-term equity position, and the allowable income-to-debt ratio.

You are welcome to use your own lender, or Hibbs Homes can refer you to a group of experienced high-performance construction lenders. Most of our preferred lenders use an “all-for-one” model for construction loans, meaning your construction loan and permanent financing close at the same time. With an all-for-one loan, you pay interest on the funds drawn from your loan. Since Hibbs Homes does not charge any upfront costs, and there are typically no upfront fees from the bank, you only pay for the labor and materials purchased to-date during construction.

 We recommend meeting with a lender as soon as you’ve decided to move forward with your project and signed the Pre-Construction Agreement. Your pre-approval shapes your home’s construction budget and selection allowances, and helps us make better planning and design decisions. The earlier you secure your financing, the sooner we can begin planning and building.

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Contact us to learn more.

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