Frequently Asked Questions

FAQ Stone Building Corp.For your convenience, Stone Building Corporation has created this list of frequently asked questions to help answer some important questions you may have regarding the construction and financing of your new home. If you have a question that is not listed here, feel free to give us a call and we will try and provide you with an answer.

 

 

 


• How much does it cost to build a custom home?

• How much per square foot should I budget for my house?

• Who should we select first, the Architect, the home designer, or the builder?

• What is "design/build"?

• How does one obtain financing to build a new home?

• Can you help me find a lender?

• How do I select a builder?

• Can you help me find a lot or land to build my new home on?

• How do sloping lots affect building costs?

• How long does it take to build a custom home?

• When do I pay Stone Building Corporation for work being done on my house?

• What is a Draw?

• What are "direct" and "indirect" costs?

• How are Direct and Indirect Costs disbursed by a construction lender?

• Where do you build?

• Will you build from my plans?

• What information should I bring to my initial meeting with Stone Building?

• May I make changes during the construction process?

• Why should I choose Stone Building Corporation to build my home?




Q: How much does it cost to build a custom home?

A: While this is the number one most frequently asked question among prospective new home buyers, it is a question that can only be answered with a reasonable degree of accuracy once the lot has been selected, the design is complete, and all of the specifications and materials have been chosen. As the design begins to take shape and you start to choose your finishes and amenities, we can provide you with preliminary cost estimate(s) that typically includes allowances for flooring, appliances, lighting & plumbing fixtures, combinations of tile, marble and granite, finish carpentry (crown molding, etc.), and stucco or siding finishes. It is important to remember that new home construction costs vary considerably and are influenced by the size of the home, topography of the lot, architectural design, building materials and finishes, and amenities. (back to top)



Q: How much per square foot should I budget for my house?

A: That depends on the size and style of the home as well as the materials and finishes chosen. As an example, did you know that a single-level home generally costs more per square foot to construct than a multi-story house? Also, the cost per square foot decreases as the size of the home increases. As a guide for preliminary budgeting purposes, the typical custom home usually costs somewhere between $120 to $250 per square foot or more to construct. (back to top)



Q: Who should we select first, the Architect, the home designer, or the builder?

A: We believe the builder should be contacted first or at the same time as the Architect or designer for a number of reasons. As a design-builder, we can provide you with pre-drawn designs, and/or put you in contact with local architects who can help you get started on designing your new home from scratch. We can also help you better understand the overall process, help you create a budget, and answer important questions about choosing the right lot and obtaining construction financing. If you already have an Architect or designer on board, you will want to include the builder as soon as possible so that both the contractor and designer understand from the beginning what you want and don't want in your new home. (back to top)



Q: What is "design/build"?

A: Design-build is a form of project delivery in which owners contract with a single entity, the design- builder, to provide both design and construction services. Typically, the team includes an architect and a contractor, who are partners in the undertaking. Principal advantages of a design-build contract are to provide a single point of responsibility for the both the design and construction processes saving you valuable time & money while ensuring for a smooth construction process. (back to top)



Q: How does one obtain financing to build a new home?

A: Generally speaking, there are two common methods to finance the construction of your new home:

1. First, you could secure a construction loan, which will disperse funds on pre-determined schedule to the builder for payments of invoices from suppliers, subcontractors, etc. When the home has been completed and the funds have been dispersed, you will need to secure your permanent financing or "take-out" loan - the same type of loan that you would get for an existing or resale home. 

2. The other financing option is to secure a "construction/take out" loan, also known as a "rollover" loan or permanent construction loan. This is a single loan that funds the construction of the home and then automatically converts to a permanent loan when the construction is complete. A couple key advantages to this loan are that it carries just one set of loan fees and points and only requires one ‘loan closing’.(back to top)



Q: Can you help me find a lender?

A: Yes, Stone Building Corporation can recommend several lenders that specialize in providing competitive financing for the construction and purchasing of lots. Feel free to review the “Home- Buyer Resources” section of our website, which has additional information about construction and lot loan financing. (back to top)



Q: How do I select a builder?

A: We recommend that you meet with two or more qualified builders and pick one whose personality is compatible with yours. This is a very important step as good communication during the building process is critical.

When reviewing the bids, make sure you are comparing "apples to apples". For many reasons, especially in custom home building, the lowest bid may not produce the finished product that you expect and deserve. (back to top)



Q: Can you help me find a lot or land to build my new home on?

A: 
Yes, Stone Building Corporation has a network of realtors and land brokers in Orange County that can help you find the perfect lot. (back to top)



Q: How do sloping lots affect building costs?

A: In almost every case there will be some financial impact on the building budget, which typically include costs for grading, cutting, fill and/or compaction to create a level building pad. Building to the natural contour of the land will increase costs related to the foundation, framing and exterior building materials. Increased costs may also be incurred for exterior decking, walkways, driveways and retaining walls. (back to top)



Q: How long does it take to build a custom home?

A: There are a number of variables that impact the length of time it takes to build a custom home, namely weather, the complexity of a homes design, and the timeliness of the city’s approval process. Based on our experience, the following schedule can be used as a general guideline: 

• Design Process to Complete Working Drawings - 2 to 5 months

• Building Permit Application - 3 to 8 weeks

• Construction - 6 to 12 months
(back to top) 



Q: When do I pay Stone Building Corporation for work being done on my house? 

A: Typically, the work is divided into 10 or more stages (depending on the size of the job). After each stage is complete, we will contact you and/or the bank, who will send an inspector to the job site. If the work for that stage is completed to the satisfaction of you and the bank’s inspector, we will submit a ‘draw’ request for payment of the work completed for that stage.
(back to top) 



Q: What is a Draw?


A: A Draw is a request to have funds disbursed from your construction loan. The disbursements are intended to cover specific expenses incurred during your home's construction. Construction expenses fall under two basic categories: direct and indirect costs.
(back to top) 



Q: What are "direct" and "indirect" costs?

A: Direct costs, sometimes referred to as "on-site costs", are associated with the labor and materials used to construct your home – i.e. "board and nails”. These costs are typically disbursed based upon the percentage of completion as determined by the inspector.

Indirect costs, sometimes referred to as "off-site costs", are not directly related to labor or materials for the actual construction of your home. For example, building permits and architectural fees are typically considered indirect costs. 
(back to top) 



Q: How are Direct and Indirect Costs disbursed on my loan?

A: Direct costs are typically disbursed as improvements are completed (based on a percentage of completion). Indirect costs are typically disbursed with invoices, receipts, canceled checks or other evidence of payment and are included with the Draw Request.
(back to top) 




Q: Where do you build?

A: Throughout Orange County, California.
(back to top) 



Q: Will you build from my plans?

A: Yes, we will build from your completed plans. Of course, you also have the option of using our design/build service in which we design a home based on your needs.(back to top)



Q: What information should I bring to my initial meeting with Stone Building?

A: If you have your own lot, please bring a survey or site plan. Many clients bring us a floor plan, sketch, or clipping of a style they have in mind. Others simply bring us ideas and a list of needs and wishes for their new home. 
(back to top)




Q: May I make changes during the construction process?

A: Yes. We want you to be happy with your new home and will issue written change orders for the authorization of additional work and/or changes in the scope of construction.
(back to top) 



Q: Why should I choose Stone Building Corporation to build my home?

A: At Stone Building, we build it better than they used to! In the field we use the latest construction methods and techniques to ensure superior quality and craftsmanship in every home we build, and in the office we embrace the latest technology to closely manage schedules, budgets, and a highly skilled network of quality subcontractors. We believe we posses one of the best educated management teams in the industry with the experience and know-how to deliver a quality product on-time and on-budget every time.(back to top)