We don’t need to tell you that buying a home requires a certain degree of responsible budgeting. But if you want to build a custom home, it doesn’t have to be a pipedream. With CNC Homes, proper budgeting, and a clear plan makes no homebuilding dream unattainable. Here’s everything you need to consider to create a budget for your custom home that won’t break the bank.

Custom Home Budgeting 101


No home budget is the same. But with over 50+ years of building experience between the CNC Homes team, our expert advice can help bring your dream into fruition. Let’s start with what those dreams are. 


Determine Your Needs and Wants


Needs and wants are two separate things. Every home needs a roof and walls to protect you from the elements. But not every home needs a movie theatre and popcorn machine (although, we can certainly make those two things happen.)

First, let’s establish the needs of your home. Needs are based on your family size, lifestyle, uses, and more. The rooms you need include are spaces like bathrooms, bedrooms, a kitchen, and storage space.

Your wants are what make your dream home a reality. After all, you are hiring a custom home builder. CNC can fulfill your wants once we meet all your needs. Whether it’s a shimmering in-ground pool or stone carved patio with a view, we can make it happen.  


Assess Your Annual Income and Spending


It’s not about how much will it cost to build the home you want. It’s about how much you can afford. For instance, we recommend that your housing payment is no more than 25% of your annual take-home income. If your payment is less than 25%, that’s even better and gives your budget even more flexibility. We recommend Mint as a great app to assess your income and spending, keep track of your finances, and plan ahead. 

As the design process gets underway, our experts will use your budget to create something that’s both practical and realistic. Without sacrificing your vision, you can create a budget that considers pre-construction expenses. For instance:

  • Will the land cost be included in your mortgage? This cost could reduce what you have to spend on the build itself
  • Budget for building plans, fees, permits, utility hook-ups, and more

Account for Unexpected Costs


Expenses add-up, and your budget could grow due to things like accidents and unexpected costs for materials, labor, and more. Remember, you mustn’t overspend before construction gets underway. You’ll need that cushion if you suddenly decide a two-car garage isn’t big enough for all of your toys. 


Establish Your Final Budget Contract


After we’ve established your necessities, add-ons, and what you can afford, CNC can write out a contract. This contract will come with your budget, and it’s essential for both us (the homebuilders) and you (the homeowner.)

Once we sign, construction can get underway.


Still Need a Hand? We Can Help You Out


Creating a budget for a custom home is different for everyone. It all depends on what your wants and needs are, how your annual income and spending habits shake out, how much of a financial cushion you’ve created for yourself, and what the agreed-upon final budget is with your home builder.  

If you have everything you need and you’re ready to build, contact CNC Homes today, and we’ll get you started.

And if it looks like you’ll need a construction loan, we can help you out with that, too.