When building a new custom home. how does payment work? do you have to take out a loan. who do you pay all the money to anyway the architect. or just everyone for everything. i know i sound kind of stupid right now, but if i were to build a 500 thousand dollar home i obviously wouldnt pay it all at once. how does it work
and land also. same for the land.
You buy the land, perhaps with a loan. Then you get a construction loan. If you are not experienced in this area, hire a general contractor, and make sure he is licensed, has good references, and check out places he was in charge of the construction of. If the original owner/builders are still living there, call or visit to ask how they liked the contractor. He will then handle the rest of the work, but make sure you check out all the subcontractors (subs). Make sure all permits have been "pulled." If you just sit back and let it happen, you will get what you deserve.
If you are using a custom design by an architect, you must make sure it will meet all local and state codes.
Don’t make a pest of yourself, but make sure everybody knows you’re watching.
Generally you have to pay materials up front as needed, and labor as due. Do not pay "half" or any figure not related to work done. Keep back enough at any point to have leverage to make sure any problems are corrected.
Expect to be "low-balled" by estimates, though enough construction people are still out of work, so you should be able to get good deals.
There are several books on the subject, some may be available at your library, some online at Amazon and other sellers.