Homebuilding Education & Resources
Helpful information for anyone exploring a future build.
Understanding Your Land
Suitability Testing
Soil Suitability Testing determines how well soil absorbs water and helps determine whether a property can support a septic system, as well as the size and type of system permitted. Results influence overall land development costs and site layout.
Testing is required for properties without access to public sewer when a septic system is needed. If a prior perc test is on file, the original test location must be accessible for verification; otherwise, additional testing may be required. All perc testing is conducted or approved by the township’s Sewage Enforcement Officer (SEO).
Zoning
Each township has its own set of rules governing how land can be used. These zoning regulations impact several key aspects of your property, including:
- Minimum lot size
- Home size restrictions
- Placement of the home on the lot (front, side, and rear setbacks)
- Accessory structures such as garages, sheds, and pools
When planning your homesite, it is generally recommended that the site and all necessary improvements account for approximately 20% of your total budget. This approach ensures you allocate funds wisely while adhering to local zoning requirements.
Land Costs
Land costs can vary significantly based on several factors, including the township and school district, overall acreage, road access, and the availability of utilities. Physical characteristics of the property—such as slope, required clearing, and soil conditions—also play a major role in overall cost.
It’s important to note that the purchase price of the lot is only one part of the total investment. Additional improvements, such as driveway installation, tree clearing, grading, and utility hookups, are typically separate costs and should be factored into early planning.
Build Costs: What to Expect
What Influences the Cost of a Home Build?
Every home build is unique, and overall cost is shaped by several key factors. Structural reminders such as foundation type, home size, and layout play a major role in determining both material and labor needs.
Interior finish selections—including flooring, cabinetry, fixtures, and tile—also influence pricing, as do site-specific requirements like driveway installation, septic systems, well drilling, and excavation. In addition, township requirements such as permits, fees, and inspections contribute to total project cost.
Finally, market-driven material and labor pricing can affect overall cost and timelines, particularly during periods of high demand or supply fluctuation.
Financing a New Build
1. Pre-Approval
This determines your borrowing range and helps guide your design decisions.
2. Appraisal of Your Plans
The bank orders an appraisal based on the home plan, specs, and lot information.
3. Construction Loan Closing
Once approved, you close on a construction loan. This is different from a traditional mortgage because funds are released in stages.
4. Draw Schedule
As the home is built, the bank releases funds at specific milestones (foundation, framing, mechanicals, finishes, etc.). The bank typically sends an inspector to confirm progress before each draw.
5. Conversion to a Permanent Mortgage
After the home is complete, the loan (usually) converts into your long-term mortgage.
What are we here to help with?
We’re here to support you well before construction begins. Our team helps review land prior to purchase, guiding you through township requirements and identifying potential site considerations early in the process.
We also walk you through site work and utility needs, develop an estimate aligned with your goals and priorities, and coordinate with lenders throughout the loan process to help ensure a smooth and informed build experience.