Home building can be as simple or complex as you make it. Here are three basic steps to planning you new home.

1) Are we ready? Can we afford it?

      There is an inherent risk in home construction. Much like buying a car, you need to decide what you're willing to spend. You can go to multiple banks to see what the best structure of a mortgage is best for you. It may not be your current bank! Yes, you want to be loyal but you also don't want to throw thousands of dollars away if you can help it. There is nothing wrong with opening an account at a different bank so you get a better loan. After you have a good idea of what you can afford or are pre-approved. Make sure your significant other is 'on board' as well.

2) Decide the Who? What? and Where? (But not necessarily in that order) This can be very difficult but also very exciting as this is the 'dream' phase of the process.

           Where? You need to decide what property features you like. Do you have to have water front? Do you want maintenence-free? Do you want several acres? How close do you need to be to shopping? What school do you want your children to attend? Decide what is most important to the decision and focus on an area. Research now will help you before you go looking. Once you have decided a general area go exploring, meet real estate agents, and see what's on the internet.

           Who?   Some of the best advice you can get is from the people you already know so ask your friends/family. If you're building in a new area, you should consider asking around: future neighbors, real estate agents, or building material companies. You can also look for new homes and simply ask the owners who built their home. Finding a builder with a lot of experience will save you some of the headaches down the road but might be a little more expensive. Younger builders might be less expensive but they might not foresee the problems that are going to arise and might cost you money. Just remember that everyone has a bias. So take all advice with a grain of salt.

          What?  Do some online research to know what type of house you want. The worst situation is not having an opinion until the house is finished. Once you've found a good builder, he can also help you with your planning as to what you'd like. Finding a 'base' plan and making mild alterations is much easier than starting from scratch. Also, don't change a plan to change a plan. If it's a great plan, then you're probably not going to make it much better. I found a good piece on Mistakes to Avoid.

3) The dreaded paper work

     Before there is a hole in the ground, the entire process needs to be mapped out. Your builder will help you with this. Contracts and agreements will protect you, the builder, and the lending institution. There is no turning back when the contracts and agreements are signed but this is the last phase of preparing to build a house.

Now you're ready to do the ground work!

Do you have advice for people planning on building a new home? Post your advice in the comments.