The idea of building a custom home in Colorado appeals to most people. It’s a dream come true, a time to relish in happiness and excitement. Yet, many people feel overwhelmed during the start of their custom home project. You may have many questions and concerns regarding the planning process, the best location for your custom-built home, and of course, the amount of time it takes to complete the construction of the property.

At Denver Urban Builders, constructing a custom-built home in Colorado takes about 12 months to 18-months, including design, permitting, and construction. The construction portion of the project takes the most amount of time -usually about 9 months -followed by the average design time of four to five months.

Projects can take less or more time than what’s mentioned above. Factors like the size of the home, weather conditions, and changes all impact the timeframe for the construction of your new custom-built home. The larger the home, the longer you should expect the building process to take, of course, but remember other factors also weigh in on the timeframe.

Here is a breakdown of the timeframe new home builders should expect to incur.

Securing a Construction Loan

Families building a custom home in Colorado do not apply for mortgage loans since there is no home yet. Instead, builders apply for construction loans to secure financing for the project. Many people say getting approved for a construction loan is harder than getting a mortgage approval.

That is why it’s a good idea to get pre-qualified before your custom-home journey starts. You’ll have much more peace of mind once the lender provides information such as the amount of money you qualify for through a construction loan.

Lenders will discuss with you the information needed to apply for and secure a construction loan. Generally, applicants need to meet certain income requirements and qualify through an acceptable credit score. Each lender sets its standards for credit scores and income requirements.

Once you provide the necessary information to the lender, he’ll determine the amount of money you can borrow and the amount of money you’ll need to cover to complete the project. The pre-qualification can be completed in a matter of days so you can have the money necessary to start the custom home building process. The project can halt if you are not prepared to pay your portion at this time.

Finding Land

Once you’ve acquired a pre-approval or pre-qualification for your custom-built home, finding land is the next step. Finding the right piece of land to build your home can take a few short weeks or several long months or years, depending on your budget, the area and number of acres you need, and other factors. We suggest allowing up to six months to find the perfect piece of land to build your custom home.

Working with an experienced real estate agent when searching for land can ease many of the headaches associated with the task. Real estate agents charge nominal fees well worth the expense since they take the hard work out of the land selection process.

Typical escrow periods for land range from 30 to 45-days. The escrow period is the time between signing the contract to closing. Make sure your builder is part of the escrow phase of your custom-home project because they can advise you of the site conditions, infrastructure, land stability, and other important details.

Denver Urban Builders wants your custom home to be as perfect in real life as it is in your dreams. When you’re ready to get expert builders in Denver that work with you, not against you, give us a call. We can help you learn what to look for when buying land and otherwise ease some of the challenges associated with finding land for your new custom-built home in Colorado.

Planning & Design

Planning and design is the next phase of the custom home building project. The planning and design phase averages about four to six months, time broken down into floor plan design, site planning, and engineering, material and finish selections, and finally, estimates and budgeting.

The planning and design process is significant, perhaps more so than the actual home construction. A detailed, well-articulated design plan is easier and faster to build with and results in fewer changes down the road while minimizing time-consuming mistakes and mishaps.

• Step One: A discovery meeting that results in a summary document of the needs and wants in the home. This step takes one to two weeks.
• Step Two: Sign design agreement
• Step Three: Create a floor plan. This takes six to 10-weeks.
• Step Four: Site Planning and engineering, choosing material and finishes. This entire process takes between four and six weeks.
• Step Five: Budgeting and estimates are next. Expect this process to take up to one month.

Permits & Loan Approval

After the design process, we schedule a budget review meeting. We will review the design package, plans, and budget at this meeting. We then sign a construction agreement to build. We then provide the contract and budget to the lender who orders a pre-construction appraisal. The lender does underwriting and prepares to close the loan. Next, we submit applications for permits. This can take 30 to 45-days, depending on the type of permit. The entire process takes about six weeks.

Building

Finally, after months of planning, the time you’ve waited for has arrived! The building phase of the project typically takes six to nine months, however, factors such as site conditions, weather conditions, the complexity of the design, and its size can all affect the timeframe.

Denver Urban Builders works quickly but efficiently when building your custom home in Colorado. You’ve waited for this moment for so long; we want to make it the moment you hoped it would be. Our building process ensures quality and satisfaction when the project is complete. Expect nothing less when you trust us to build your custom home.

What Can Slow Down the Custom Home Building Process?

Delays can happen that slow down the time it takes to build your home.

Changes in Home Design

As Colorado custom home builders, we expect changes. It is part of the building process. It is not always easy to decipher how a home will look before construction begins, even when floor plans and drawings are on the table.

While we welcome changes and are always happy to make them, understand that changing any of the house plans from the original design impacts the completion time of the project. Major changes in the original design plans can certainly tackle weeks or months onto the completion time.

Weather

Colorful Colorado residents know firsthand how unpredictable the weather can be. Hailstorms, extreme heat, blizzards, and snowstorms are among the typical weather delays responsible for slowing down the completion time of your custom home.

Rest assured most custom home building projects are not affected by the weather. Nonetheless, knowing that it is a risk, especially in a state like Colorado, can ease frustrations later down the road.

Trouble Finding a Location

Location, location, location! Choosing the right space now ensures you can enjoy your custom-built home many years from now. If you decide the home isn’t big enough in the future, having enough land allows you to add on. You can even upgrade the style. But you cannot change its location!

Finding land in Colorado can be a challenge. Eager buyers may settle for land that doesn’t meet their needs simply to finish up the building process. Do not include yourself in that list of buyers. Settling for a mediocre location makes matters worse.

Rest assured we will work tirelessly to help you find the pristine location for your custom-built home. We want you to love the location of the new home just as much as you love the new build.

Trouble Securing Financing

Financing is the heart of a custom home-building project. Without money, your project is put on hold.

Trouble securing a construction loan can also delay the start of the custom home building process. Make sure you pre-qualify and get a pre-approval to avoid this type of mishap. Months before you plan to buy, ensure you have taken steps to improve your credit score. Doing so can ensure lenders want to loan you money to build your dream home.

A few steps to take to improve your credit score:

• Obtain copies of your credit report from all three major reporting bureaus. Look for errors and dispute them immediately. The dispute process takes only minutes and can help correct errors and improve your credit score. Everyone is entitled to receive one free copy of their credit reports from the three major reporting bureaus every year.
• If your credit report reveals any unpaid debts, pay them off immediately. Contact the creditor to work out a payment plan if the debt is large. Most creditors happily offer payment plans and may even reduce the total amount owed on the debt. Be sure to pay debts that haven’t made it onto the credit report yet to avoid a plummeting score.
• Opening new lines of credit can benefit your credit score and overall approval odds but do not get in over your head!

Material Shortages

Lumber shortages at the start of 2020 carried on into 2021, increasing the cost of pre-built and custom-built homes. Material shortages like this do not happen often but when they do, it can affect the time of completion. Materials can take longer than expected to arrive which can put the entire project on a halt.

Should I Build a Custom Home in Colorado?

Building a custom home in Colorado takes longer than moving into a pre-built home but as they say, great things come to those who wait. In reality, building a custom home costs about the same or only a fraction more than purchasing a pre-built home but the perks are outstanding.

Building a custom home in Colorado awards you the freedom to choose every aspect of the home. From the layout to the materials and finishes, the home always meets the needs of your family. No more compromising for a home that only partially meets your needs.

A custom home design allows you to design a unique home that makes you comfortable, minus the one-size-fits-all approach given to most homes in a neighborhood.

Sure, building a custom home is a much longer process than moving into a pre-built house but the rewards are significant enough that it’s worth the wait. Home is where the heart is, especially when you design the home from the ground up. With the building experts at Denver Urban Builders completing the project, rest assured your custom home will exceed expectations. We’ll incorporate luxury splurge items such as stone fireplaces or wall-to-wall windows if you want just as easily as we can install energy-efficient appliances or custom-build your kitchen cabinets. Tell us what you want and we will bring your visions to life.