Make up your mind - Before choosing a builder, picking out paint colors or mentally arranging your furniture, decide what you are looking for in a house. Determine what features are “must-haves” and which are “nice to haves” and find a floor plan that most closely matches the way you like to live. Change orders, which involve changing the floor plan during construction, can be costly.

Choose a reputable builder - Going the cheap route while choosing a builder can cost you more money in the future. Just as a chain is only as good as its weakest link, the builder is only as good as his subcontractors and materials. Find a builder who is a member of the National Association of Home Builders (NAHB) and check references. Do not be reticent about asking questions, driving past homes the builder has completed or is currently building, and/or asking clients if they are happy with their results. You might also check the Better Business Bureau and Rip Off Report-type websites.

Location, location, location - Find land that is right for your particular home and/or needs. Clearing rocks or trees and leveling land can quickly add to the cost of building your home. Check into costs such as property taxes, building permits, HOA fees and consider them while making your budget. If you have already bought your lot, make sure you include any charges to install meters, cable installation, electrical hookups, etc. These expenses can vary greatly from one area to the next.

Building Materials - Ask your builder at which stage of construction materials must be purchased, and if unused materials can be returned for credit. Decide quality level you and your family want as it relates to selection of materials for cabinets, counter tops, fixtures, flooring, etc. While it is acceptable to choose less expensive materials for some items that are easily replaced, you may want higher-end materials for your kitchen and/or master bath. Tearing out tile floors, laminate countertops, or composite wood cabinets in the future can be more expensive than getting what you want from the start.

Think about being your own General Contractor - Hiring yourself can save you around 15% of the costs, but this job can be very time consuming and costly, especially if you do not have a background in home construction, finding reputable sub-contractors, purchasing materials, and managing project schedules. When you hire a home builder, it is his job to stay on time and within budget. Carefully consider the potential savings versus the time and stress involved.

Finally, remember that your new home is not simply a structure, but an extension of your personality and lifestyle. With a little creativity and hard work, you can build your dream house within a budget.

Best wishes in the building of your new home!