Building a custom home in California is an exciting journey, and understanding the process before you begin can help you plan with confidence.
If this is your first home purchase, our First Time Home Buyer Guide From Start to Keys explains the entire homebuying journey, from preparing your finances and getting pre-approved to closing on your new home.”
A One-Time Close Construction Loan combines your construction financing and your permanent mortgage into a single loan. Instead of qualifying twice and closing two separate loans, you complete one loan that finances the construction of your home and then converts into your permanent mortgage once construction is complete. This program is available for the construction of one to four-family residences built by a licensed builder or general contractor.
Most custom home projects in California follow these steps:
- Purchase your land.
- Work with an architect and structural engineer to design your home.
- Submit your plans to the county for review and obtain your building permits.
- Finalize your construction plans, specifications, and fixed-price builder contract.
- Close on your One-Time Close Construction Loan.
- Construction begins.
- Your builder receives monthly construction draws based on the percentage of work completed. Before each draw is released, an inspection is completed to verify the progress of construction.
- During construction, you make interest-only payments on the funds that have been disbursed.
- Once your home is complete, your loan automatically converts into your permanent mortgage, and your monthly payment transitions to principal and interest based on the terms of your loan.
Unlike purchasing an existing home, building a custom home is completed in phases. From selecting the perfect homesite to designing your floor plan, obtaining permits, and watching your dream home come to life, every milestone moves you one step closer to creating a home that’s uniquely yours.
Should You Build a Custom Home or Buy an Existing Home?
One of the questions I hear most often is:
“Should I build a custom home or buy an existing home?”
The answer depends on your financial situation, your timeline, and ultimately the lifestyle you’re hoping to create.
Buying an Existing Home May Be the Better Choice If:
- You need to move within the next few months.
- You’d rather not make hundreds of design decisions.
- You’re looking for an established neighborhood with mature landscaping.
- You want to begin building equity immediately after closing.
For many buyers, purchasing an existing home is the fastest and simplest path to homeownership.
If you’re still deciding between building and buying, understanding today’s housing market can help you determine which path best fits your goals.
Building a Custom Home May Be the Better Choice If:
- You want to design a home around your family’s lifestyle.
- You’ve always dreamed of living on acreage or in a more private setting.
- You want features that are difficult to find in resale homes, such as an RV garage, workshop, ADU, or multi-generational floor plan.
- You’re willing to invest the time required to create a home that’s uniquely yours.
Financial Considerations
Building a custom home requires more than simply qualifying for the construction loan.
You’ll need enough income and financial reserves to comfortably qualify for both your construction project and your current living expenses while your new home is being built. During construction, you’ll continue making payments on your current home or rental, while also making interest-only payments on the funds that have been disbursed through your construction loan.
Getting pre-approved before purchasing land or selecting a builder can help you establish a realistic construction budget.
It’s also important to understand that custom construction involves risk. Material costs can change, weather can cause delays, and unexpected expenses can arise. That’s one of the reasons lenders require a contingency reserve as part of the construction budget.
On the other hand, there is also the potential to build equity before you ever move in.
If your completed home appraises for more than your total project cost, you may begin homeownership with immediate equity. While future values can never be guaranteed, many buyers view this as one of the potential long-term financial advantages of building a custom home.
Which Path Is Right for You?
There isn’t a one-size-fits-all answer.
For some families, buying an existing home is absolutely the right decision.
For others, building a custom home is the opportunity to create something they’ve dreamed about for years.
After more than 26 years of helping families finance homes, I’ve learned that the best decision isn’t the one that’s right for everyone.
It’s the one that’s right for you.
That’s why every conversation starts with understanding your goals, your budget, your timeline, and the life you want to create. Once we’re clear on your vision, we can determine whether building or buying is the better path forward.
Why Many Buyers Choose a One-Time Close Construction Loan
One of the biggest advantages of a One-Time Close Construction Loan is exactly what it sounds like. You close your loan one time.
With a traditional two-time close construction loan, you typically close on the construction loan first and then close a second time when the home is finished. That often means paying two sets of closing costs and qualifying for financing twice.
A One-Time Close Construction Loan is often an excellent choice when interest rates are stable or expected to rise because your permanent financing is already in place before construction begins.
However, there is one situation where a traditional two-time close loan may make more sense.
If mortgage interest rates fall significantly during the 12 to 18 months it takes to build your home, you may decide to refinance your mortgage after construction is complete to take advantage of the lower rates. If you know there’s a strong likelihood you’ll refinance shortly after moving in, the benefit of locking your interest rate early may be less valuable.
There isn’t a one-size-fits-all answer. The right construction loan depends on your goals, the current interest rate environment, and your long-term financial strategy. That’s why I spend time helping each client compare both options before deciding which financing approach is best for their custom home.
Every Dream Home Begins With a Vision
Before there are blueprints, building permits, construction draws, or financing, there is a dream.
Over the past 26 years, I’ve had the privilege of helping hundreds of families achieve homeownership, and I’ve noticed something remarkable.
Every dream home begins the same way.
Someone has a vision for a different future.
Maybe it’s waking up to peaceful views on your own piece of land.
Maybe it’s building a home where your children and grandchildren can gather for holidays.
Maybe it’s creating a multi-generational home where everyone has room to thrive.
Maybe it’s finally having a workshop, an ADU for family, or a backyard where your dogs can run free.
If adding an ADU or creating a multigenerational living space is part of your vision, renovation financing may also be worth exploring for existing homeowners.
Whatever your dream looks like, it begins with getting clear on your why.
When you’re deeply connected to why you’re building a home, the decisions become easier. The setbacks become easier to navigate. Even the waiting becomes part of the journey because every step brings you closer to something you’ve envisioned for yourself and your family.
One of my favorite quotes is, “When you know your why, the how begins to reveal itself.”
Building a custom home in California isn’t an overnight process. It requires patience, thoughtful planning, and faith in the vision you’re creating. There may be months spent designing your home, waiting for permits, and watching each stage of construction come to life.
Don’t let that discourage you.
Some of the most meaningful things in life are worth waiting for.
I always encourage my clients to get clear on their why before they begin the building process.
When you’re connected to the reason you’re building, every decision becomes more intentional. The planning feels exciting. The waiting has purpose. And each milestone brings you one step closer to creating a home that reflects the life you’ve envisioned.
One of my favorite ways to begin dreaming is by creating a virtual vision board on Pinterest.
Pinterest is an incredible source of inspiration where you can save ideas for everything from home exteriors and floor plans to kitchens, bathrooms, outdoor living spaces, lighting, landscaping, and interior design. As you collect ideas, you’ll begin to notice patterns in what you love, making it easier to communicate your vision with your architect, builder, and design team.
If you’re just beginning your journey, I also invite you to visit our Homebuyer Inspiration Hub, where you can download our free Get Clear on Your Why guide. Sometimes the first step isn’t choosing a floor plan. It’s discovering the deeper reason you want to build a home in the first place.
Dream homes aren’t created overnight.
They begin with a vision.
They grow through thoughtful planning.
And with patience, perseverance, and the right team beside you, they become the place where some of life’s most meaningful memories will be made.
Ready to Take the First Step?
If you’d like to explore whether building a custom home is the right fit for you, I’d love to help.
✔ Schedule your complimentary 30-minute Dream Home Discovery Call
A Dream Home Two Years in the Making: A Shingle Springs Success Story
One of my favorite client stories is about a wonderful family who dreamed of building their forever home on one acre in beautiful Shingle Springs, California.
Like many people, they weren’t simply looking for another house. They wanted a home that reflected their lifestyle, their vision, and everything they had worked so hard to achieve.
Their journey began with the purchase of a beautiful one-acre homesite for $400,000. Because of the way custom construction works in California, they secured a separate land loan and put 30% down to purchase the property.
From there, the dream truly began to take shape.
They worked closely with a structural engineer and an architect to design every detail of their custom home. Once the plans were complete, they submitted them to El Dorado County for review and building permits.
The permitting process took approximately nine months.
This is one of the unique aspects of building a custom home in California.
While many one-time close construction loan programs technically allow the land to be included in the construction financing, they also require construction to begin within approximately 60 days of the loan funding. In California, that’s simply not realistic for most true custom homes because you can’t begin construction until your plans have been approved and your building permits have been issued.
For that reason, many custom home buyers in California purchase their land first, either with cash or a separate land loan. Once the plans are approved and permits are in hand, they move forward with the custom construction loan.
That’s exactly what this family did.
Once El Dorado County issued their permits, we financed approximately $650,000 to build the home they had envisioned.
Throughout construction, the builder received funds through scheduled construction draws as each phase of the project was completed and inspected.
From the day they purchased their land until the day they moved into their completed home, two years and two months had passed.
As construction neared completion, they sold their previous home in Carmichael and moved directly into the home they had dreamed about for years.
When everything was complete, their beautiful custom home appraised for approximately $1.3 million.
Every Dream Begins With a Vision
One of the reasons I love helping clients with custom construction financing is that every home tells a story.
This family didn’t settle for a floor plan that almost fit their needs.
They took the time to create a home that reflected who they are and how they wanted to live.
Dream homes aren’t built overnight.
They’re built one decision, one milestone, and one step at a time.
With patience, thoughtful planning, and the right financing strategy, what begins as a vision on paper can become the place where memories are made for generations to come.
Your Top Questions About Building a Custom Home in California, Answered
If you’re considering building a custom home, you probably have a lot of questions. Here are some of the most common questions I receive from clients as they begin planning their dream home.
What Is the Minimum Down Payment?
For this One-Time Close Construction Loan program, the minimum down payment is 20%, allowing financing up to 80% of the completed appraised value of your custom home.
Can the Equity in My Land Count Toward My Down Payment?
Yes. If you already own the land, the equity in your property may be used to satisfy all or part of your required down payment, depending on your individual situation.
Can the Money I’ve Already Spent on Plans, Engineering, and Permits Count Toward My Down Payment?
Yes. Eligible out-of-pocket expenses you’ve already invested in your project, such as architectural plans, engineering, surveys, and permits, may be credited toward your required investment when properly documented.
This can be a tremendous benefit because you’re receiving credit for money you’ve already invested in making your dream home a reality.
What Credit Score Do I Need?
The minimum qualifying credit score for this program is 700.
Can I Build My Own Home?
No.
This program requires your home to be constructed by an approved licensed builder or general contractor. Owner-builder projects and spec construction are different loan programs and are not eligible under these guidelines.
Does My Builder Need to Be Approved?
Yes.
Before construction can begin, your builder must be approved by the lender. This includes reviewing the builder’s licensing, insurance, experience, financial qualifications, and construction contract to help ensure your project is completed successfully.
What Happens During Construction?
Your builder is paid through a series of scheduled construction draws as each phase of the home is completed. Before funds are released, inspections are completed to verify the work has been finished according to the approved plans.
During construction, you’ll make interest-only payments on the funds that have been disbursed. Once construction is complete, your loan automatically converts into your permanent mortgage, and you’ll begin making your regular principal and interest payment.
Can I Finance a Manufactured Home With This Program?
No.
This One-Time Close Construction Loan is designed for new site-built, stick-built homes and is available for one to four-unit owner-occupied properties.
What Happens to My Land Loan When I Get My Construction Loan?
If you purchased your land with a separate land loan, the balance of that loan is typically paid off at the closing of your One-Time Close Construction Loan.
At that point, the land and the construction of your new home are combined into one construction loan, giving you a single loan moving forward rather than separate land and construction financing.
Do I Make a Full Mortgage Payment While My Home Is Being Built?
No.
During construction, you’ll generally make interest-only payments based on the amount of money that has actually been disbursed to your builder, not on the full loan amount.
For example, if your construction loan is $700,000 but only $150,000 has been advanced to the builder during the early stages of construction, your interest payment is calculated using only that $150,000 balance.
As construction progresses and additional funds are disbursed, your monthly interest payment gradually increases because more of the loan has been used.
Once construction is complete, your loan automatically converts into your permanent mortgage, and you’ll begin making your regular principal and interest payment.
How Does My Builder Get Paid?
Unlike purchasing an existing home where the seller receives all of the funds at closing, construction financing is completed in stages.
Before construction begins, your builder and lender establish a draw schedule that outlines when funds will be released throughout the project.
Typical stages may include:
- Site preparation and foundation
- Framing
- Roofing and exterior
- Plumbing, electrical, and HVAC
- Drywall and interior finishes
- Cabinets, flooring, and fixtures
- Final completion
At the completion of each stage, an inspection is performed to verify that the work has been completed according to the approved plans. Once the inspection is approved, the lender releases the next construction draw directly to the builder.
This process continues until your home is complete, helping ensure the project stays on schedule while protecting both you and the lender throughout construction.
Understanding Construction Costs, Contingency Reserves & Your Timeline
One of the biggest differences between building a custom home and purchasing an existing home is that construction takes place over time. Understanding both your timeline and your budget from the beginning helps create a smoother building experience.
How Long Does It Take to Build a Custom Home?
While every project is unique, most custom homes are completed within 12 to 18 months after construction begins.
Keep in mind that this construction timeline does not include the time required to:
- Purchase your land
- Design your home
- Complete structural engineering
- Obtain county approval and building permits
- Close your construction loan
Depending on the county and the complexity of your project, those steps can add several additional months before construction even begins.
That’s why it’s not unusual for the entire journey, from purchasing your land to moving into your completed home, to take around two years or longer, as it did for one of my clients who built their dream home in Shingle Springs.
What Is a Contingency Reserve?
A contingency reserve is money that’s built into your construction budget to help cover unexpected costs that can arise during construction.
Even with careful planning, unexpected expenses can happen. Material prices can change, site conditions may require additional work, or modifications may become necessary once construction is underway.
For this construction loan program, a minimum 5% contingency reserve is required as part of the total construction budget. This reserve helps provide a financial cushion should unexpected costs arise during the building process.
Stay Engaged Throughout the Building Process
One of the things I encourage every custom home buyer to do is stay involved throughout the construction process.
Even with an experienced builder and a project manager overseeing the build, no one cares about your dream home as much as you do.
Years ago, I worked with a client building a custom home in St. Petersburg, Florida.
The lot had been in his family for many years and was located directly across the street from his parents’ home, making it the perfect place to build.
The builder had designed a beautiful three-bedroom, two-bath home, and one feature my client was especially excited about was the 15-foot vaulted ceilings throughout the main living area. He wanted the home to feel bright, open, and spacious.
As construction progressed, the foundation was poured and the framing was completed.
Excited to see the progress, he stopped by the job site.
The moment he walked through the front door, he knew something wasn’t right.
Instead of the dramatic vaulted ceilings he had envisioned, the home had been framed with standard 8-foot ceilings, making the space feel much smaller than intended.
He immediately contacted the general contractor, and together they walked through the plans.
After a lengthy discussion, the builder realized there had been a communication error during the framing process.
To the builder’s credit, they accepted responsibility.
The framing was removed, the home was reframed with the correct 15-foot vaulted ceilings, and my client was not charged for the correction.
That experience taught us both an important lesson.
Even when you’re working with an outstanding builder, it’s important to visit the job site regularly, ask questions, and compare the work being completed to your approved plans.
Custom homes are built one stage at a time, and identifying questions early is almost always easier than waiting until the project is complete.
Building your dream home is a true partnership between you, your builder, your lender, and your construction team.
By staying involved throughout the process, you’ll have greater confidence that every detail reflects the vision you worked so hard to create.
How Much Money Do I Need to Build?
Your total investment typically consists of several components, including:
- Your required down payment or land equity
- The purchase price of the land (if not already owned)
- Construction costs
- Architectural and engineering plans
- Building permits
- Eligible closing costs
- A minimum 5% contingency reserve
One of the benefits of planning your project early is that many eligible expenses you’ve already paid, such as architectural plans, engineering, surveys, and permits, may be credited toward your required investment when properly documented.
Building a custom home is a significant investment, but with the right planning and financing strategy, you’ll have a clear understanding of your budget before construction begins, allowing you to move forward with confidence.
How Is the Value of My Custom Home Determined Before It’s Built?
One of the questions I hear most often is:
“How can a lender know what my home is worth if it hasn’t been built yet?”
It’s a great question.
Before your construction loan closes, the lender orders an appraisal based on your completed plans, specifications, building materials, and the characteristics of your homesite.
The appraiser studies comparable custom homes that have recently sold in the area and estimates what your completed home is expected to be worth once construction is finished. This is commonly referred to as the “as-completed” value of the home.
That appraised value plays an important role in determining your financing.
The lender also reviews the total acquisition cost of your project, which typically includes:
- The purchase price of the land
- Construction costs
- Eligible closing costs
- Required contingency reserves
Depending on your situation, the loan-to-value calculation is based on the applicable program guidelines and the estimated value of the completed home.
How It Works
- You purchase the land and sign a fixed-price construction contract with your builder.
- An appraiser reviews the building plans, specifications, and construction budget before construction begins.
- The appraiser estimates what your completed home will be worth once construction is finished. In this example, the estimated completed value is $1,300,000.
- The lender uses that estimated future value to determine how much can be financed and to confirm the completed home supports the loan amount.
- Once approved, construction financing moves forward with confidence, knowing the project budget and expected completed value align. This helps protect you, your builder, and the lender throughout the process.
Ready to Take the First Step?
If you’d like to explore whether building a custom home is the right fit for you, I’d love to help.
✔ Schedule your complimentary 30-minute Dream Home Discovery Call
Should You Build a Custom Home or Buy an Existing Home?
One of the most common questions I hear is:
“Would I be better off building a custom home or buying an existing home?”
The answer depends on your goals, your financial situation, your timeline, and the lifestyle you’re hoping to create.
There isn’t one right answer.
Both can be excellent financial decisions.
Reasons You Might Choose to Buy an Existing Home
Buying an existing home is often the right choice if you need to move quickly or prefer a simpler process. You’ll begin building equity immediately after closing, and you’ll have the opportunity to move into your new home within weeks instead of waiting for construction to be completed.
For many families, purchasing a resale home is the fastest path to homeownership.
Reasons You Might Choose to Build a Custom Home
For others, building is about creating something that’s uniquely theirs.
Instead of compromising on someone else’s floor plan, you have the opportunity to design a home around your lifestyle, whether that’s an open-concept kitchen, a home office, an ADU for family, an RV garage, a workshop, or a home perfectly positioned to capture a beautiful view.
Many buyers also choose to build because new homes are constructed to today’s building standards and often include modern energy-efficient materials, updated technology, and lower maintenance costs during the early years of ownership.
Can Building a Home Create Equity More Quickly?
One of the reasons many people choose to build is the potential to create equity before they ever move in.
If the total cost of your project, including the land, construction, closing costs, and contingency reserve, is less than the completed appraised value of the home, you may begin homeownership with equity already established.
While future appreciation can never be guaranteed and every market is different, thoughtful planning and purchasing the right property at the right price can create opportunities to build long-term wealth.
Is Building Less Expensive Than Buying?
Not always.
In some markets, purchasing an existing home may cost less.
In others, building can provide greater long-term value because you’re creating a home specifically designed for your family while potentially building equity during the construction process.
The decision shouldn’t be based on price alone.
It should be based on the life you’re trying to create.
Things to Consider Before Building
Building a custom home requires careful planning.
You’ll need sufficient funds for your required down payment and reserves, and you’ll need to comfortably qualify for both your current housing expenses and the interest-only payments during construction while your home is being built.
It’s also important to understand that custom construction comes with risks. Material costs can change, weather can delay construction, and unexpected expenses can arise. That’s why contingency reserves are built into construction loans to help protect your project if unforeseen costs occur.
My Perspective After 26 Years
After helping families finance homes for more than 26 years, I’ve learned that the best financial decision isn’t always the one that looks the least expensive on paper.
It’s the one that supports the life you want to live.
If your goal is to move quickly into an established neighborhood, buying an existing home may be the perfect solution.
If your dream is to design a forever home that’s built around your lifestyle and your family’s future, building a custom home can be one of the most rewarding journeys you’ll ever take.
Sometimes the greatest return on your investment isn’t measured only in dollars.
It’s measured in the life you get to live.
Sometimes the Greatest Return Isn’t Measured in Dollars
Years ago, a friend of mine made a decision that many people thought was a little crazy.
She purchased two acres on a mountaintop overlooking the Pacific Ocean in Costa Rica.
She wasn’t buying it because she had immediate plans to build.
She was buying it because she knew, deep in her heart, that one day she would.
In 2007, she purchased the land for $300,000 by borrowing money from family and paying them interest while she held the property. She didn’t yet have the resources to build, but she knew opportunities come and go, and she wasn’t willing to let this one pass her by.
A few years later, she received an inheritance that finally made it possible to begin building the home she had envisioned for years.
Construction began in 2011.
She designed a simple three-bedroom, two-bath home with an open-concept floor plan that captured the breathtaking ocean views. From the front entry, you could see straight through the home to the Pacific. Several of the living spaces didn’t have traditional exterior walls at all, only large screened openings that welcomed the fresh ocean air and made nature feel like part of the home.
Building on the side of a mountain wasn’t easy.
A significant portion of her construction budget wasn’t spent on countertops or luxury finishes. It was invested in engineering and infrastructure. The foundation had to be drilled deep into the bedrock so the home could safely withstand the mountainous terrain and potential landslides.
The home cost approximately $400,000 to build.
One of my favorite parts of her story is that she camped on the property while her dream home was being built.
Day after day, she watched it come to life.
She witnessed the foundation being poured, the walls going up, and each stage bringing her one step closer to living in the home she had imagined for years.
Her back porch became the heart of the property. Using a tree that had fallen on the land, she handcrafted an incredible dining table with matching benches that became the gathering place for family and friends to enjoy meals while watching the sun set over the Pacific Ocean.
Several years later, she added an infinity-edge swimming pool overlooking the ocean for approximately $50,000, completing the vision she had carried for so many years.
From the time construction began until she moved in, the project took approximately 18 months.
Today, nearly twenty years after purchasing the land, she’s preparing to sell the property for approximately $1.2 million.
Was building the right financial decision?
For her, absolutely.
She created significant equity over time.
But more importantly, she spent years living in a home that reflected her dreams, her personality, and the life she wanted to create.
That’s what I love about custom homes.
They aren’t simply places to live.
They’re places where dreams become reality, memories are made, and wealth can be built, both financially and emotionally.
Sometimes the greatest return on your investment isn’t measured only in dollars.
It’s measured in the life you get to live.
Your Dream Home Starts With One Conversation
Building a custom home is about so much more than financing.
It’s about creating a place where birthdays will be celebrated, holidays will be shared, grandchildren may one day visit, and countless memories will be made.
It’s about designing a home that reflects your lifestyle, your family, and your vision for the future.
Yes, building a custom home takes planning. It takes patience. It takes the right team surrounding you every step of the way.
But after helping families achieve their homeownership dreams for more than 26 years, I can tell you something with confidence.
The families who build their dream homes aren’t necessarily the ones with the highest incomes or the largest savings accounts.
They’re the ones who get clear on what they want, create a thoughtful plan, and continue moving forward one step at a time.
If you’ve been dreaming about building your own home, I’d love to help you explore what’s possible.
Whether you’re still searching for land, already own acreage, or you’re ready to begin building, we’ll create a personalized strategy based on your goals, your timeline, and your financial situation.
Your dream home may be closer than you think.
Ready to Explore Your Options?
✔ Schedule your complimentary 30-Minute Dream Home Discovery Call
or
✔ Visit our Homebuyer Inspiration Hub and download our free Get Clear on Your Why guide to begin creating the vision for your future home.
Every custom home begins with a dream.
The next step is creating a plan.
I’d be honored to help you build both.
❓FAQs About Custom Construction Loans in California
For this One-Time Close Construction Loan program, a minimum 20% down payment is generally required. If you already own your land, the equity you’ve built may satisfy all or part of your required down payment. In many cases, eligible out-of-pocket expenses, such as architectural plans, engineering, surveys, and permits, may also receive credit toward your investment when properly documented.
While many One-Time Close Construction Loan programs technically allow land and construction to be financed together, most custom home buyers in California purchase their land first. That’s because construction generally must begin shortly after the loan closes, while obtaining architectural plans and county building permits can take many months.
Most custom homes take approximately 12 to 18 months to build once construction begins. When you include purchasing land, designing the home, engineering, permitting, and loan approval, it’s common for the entire process to take around two years from start to finish.
For this program, the minimum qualifying credit score is 700. Your lender will also review your income, assets, debt-to-income ratio, and overall financial profile as part of the approval process.
No. This loan program requires construction to be completed by an approved licensed builder or general contractor. Owner-builder and spec home projects require a different type of financing.
If you financed your land with a separate land loan, it is typically paid off when your One-Time Close Construction Loan closes. At that point, the land and construction financing become one loan, simplifying your financing throughout the building process.
No. During construction, you’ll generally make interest-only payments based on the amount of money that has been disbursed to your builder. As additional construction draws are released, your interest payment gradually increases. Once construction is complete, your loan automatically converts into your permanent mortgage with regular principal and interest payments.
Before your loan closes, an independent appraiser reviews your architectural plans, specifications, homesite, building materials, and comparable custom homes in the area. The appraiser estimates what your completed home is expected to be worth once construction is finished, often referred to as the as-completed value. This valuation helps determine the financing available for your project.
