A Complete Construction Checklist for Building Your New Home

Building a home from the ground up is one of the most exciting and legally complex projects a person can undertake. As a Michigan real estate attorney with more than 35 years of experience, I have watched homeowners stumble into costly problems. These issues usually happen because they lacked a clear roadmap before breaking ground.

That is why I assembled this new home construction checklist. This structured, stage-by-stage guide will keep you organized and protect your investment. Most importantly, it will steer you clear of the legal pitfalls that derail so many dream-home projects.

There are more than 120 individual steps involved in constructing a new home. From choosing your lot and securing a construction loan to scheduling final inspections, each phase builds on the one before it. Miss a single step and you risk delays, cost overruns, and legal disputes. Use this guide to stay ahead of the process at every stage.

Phase 1: Pre-Construction Planning and Site Selection

The decisions you make before a single shovel hits the ground will shape every phase that follows. Pre-construction planning is where most costly mistakes originate. Fortunately, this is also where careful legal review pays the biggest dividends.

Key Pre-Construction Tasks

• Define your budget, including a 10% to 15% contingency fund for unexpected costs.

• Identify and purchase suitable land, then confirm zoning laws and utility access.

• Commission a land survey to establish property boundaries clearly.

• Conduct soil testing to verify the site can support your intended foundation.

• Review any deed restrictions, easements, or HOA covenants on the property.

• Engage a licensed architect or designer to prepare your home blueprints.

• Confirm the lot’s floodplain status and secure any required elevation certificates.

• Consult a real estate professional to review the land purchase agreement and title.

One step many first-time builders overlook is a title search on the land parcel. Before you commit your financing to a piece of property, you must confirm the seller holds a clear title. You need to know that no liens or easements will complicate your build.

This is where title insurance for the lot becomes essential. Learn more about why property owners need title insurance at the Soble Law Title Insurance Guide.

Phase 2: Financing Your New Home Build

New home construction requires different financing from a standard home purchase. Rather than a traditional mortgage, most lenders provide a construction loan. This short-term loan funds the build in stages called “draws” as construction milestones are completed. Once construction is finished, the loan typically converts to a permanent mortgage.

Critical Financing Checklist Items

• Obtain pre-approval from a construction lender before signing any builder agreements.

• Understand the draw schedule to know when funds release and what triggers each draw.

• Budget for interest-only payments during the active construction period.

• Confirm whether you need a separate lot loan or if it wraps into the main loan.

• Review all loan documents with a professional because construction loan terms are complex.

• Establish a contingency reserve for change orders and unexpected cost overruns.

I have seen construction projects grind to a halt because a homeowner and their lender had different understandings of the draw schedule. Those disputes frequently involve the builder as well.

If your project stalls and you believe your contractor is misrepresenting costs to your lender, take immediate action. This issue may constitute mortgage fraud. See our related article on contractor misstatements at the Soble Law Mortgage Fraud Resource for more details.

Phase 3: Permits, Approvals, and Legal Documents

Before construction begins, you will need a series of building permits and government approvals. In Michigan, local municipalities administer these permit requirements. Skipping this step can result in stop-work orders and fines. It also creates serious complications when you try to sell or refinance the property later.

Permits and Approvals Typically Required

• Main building permit from your local municipality

• Electrical permit

• Plumbing permit

• Mechanical and HVAC permits

• Zoning approval and setback verification

• Environmental approvals for waterfront or wetland-adjacent sites

• Driveway and utility connection permits

Critical Legal Documents to Review

• Construction agreement with your general contractor

• Subcontractor agreements for specialty trades like electrical and plumbing

• Purchase agreement for any model home or builder-owned lot

• Lien waivers from contractors and subcontractors at each draw stage

• Builder’s warranty document

The most important document on that list is your construction agreement. This contract governs the scope of work, payment terms, change order procedures, timelines, and dispute resolution. A poorly written construction agreement is the single most common source of builder disputes. Review our full guide at the Soble Law Construction Agreement Guide before signing anything.

Also, before you finalize your purchase agreement with a builder, make sure you understand your earnest money deposit. Those funds may be at risk depending on how the contract is written. Our guide to earnest money deposits at the Soble Law Earnest Money Resource covers the key protections you need to negotiate.

Phase 4: Site Preparation and Foundation

With permits in hand and contracts signed, physical construction begins. Site preparation and foundation work are the most structurally consequential phases of the entire project. Errors here are among the most expensive to correct.

Site Preparation Checklist

• Clear and grade the lot.

• Install erosion control and silt fencing.

• Mark utility lines clearly before excavation.

• Excavate the ground for the foundation.

• Install temporary electrical services and water for construction use.

• Set up a construction waste management plan.

Foundation Checklist

• Confirm the foundation type with an engineer, such as a full basement, crawl space, or slab.

• Set and pour the concrete footings.

• Waterproof the foundation walls.

• Install drainage tile or a French drain system as required.

• Backfill and compact the soil around the foundation.

• Obtain the required foundation inspection and approval before framing.

Phase 5: Framing and Exterior Shell

Framing is the phase where your blueprints truly come to life. The skeleton of the house goes up, and you can walk through the space for the first time. This is also the phase where you lock in energy efficiency decisions like wall thickness, insulation type, and window placements.

Framing and Exterior Checklist

• Frame exterior and interior walls per approved blueprints.

• Frame the roof structure using rafters or engineered trusses.

• Install roof sheathing and waterproof underlayment.

• Install windows and exterior doors.

• Apply a house wrap moisture barrier.

• Install exterior sheathing.

• Begin roofing installation for shingles, metal, or tile.

• Obtain a framing inspection before closing up the walls.

The framing inspection is a critical hold point. Your local building inspector must review and approve the framing before you can proceed with rough-in mechanical work. Never allow your contractor to skip or rush an inspection stage. Documented inspections protect you, not just the municipality.

Phase 6: Rough-In Mechanical Systems

After framing, your licensed tradespeople install the rough-in versions of your home’s mechanical systems. This includes the pipes, wires, and ducts that run inside the walls before drywall goes up. Each of these systems requires its own municipal inspection before you can proceed.

Rough-In Checklist

• Rough-in plumbing supply lines and drain, waste, or vent pipes.

• Rough-in the electrical panel, wiring, and outlet boxes.

• Rough-in HVAC ductwork, equipment, and ventilation systems.

• Install fire suppression rough-ins if applicable.

• Complete low-voltage rough-ins for cable, internet, and security systems.

• Pass the rough-in inspections for plumbing, electrical, and mechanical work.

• Complete insulation installation after passing all mechanical inspections.

• Pass the insulation inspection before hanging drywall.

Phase 7: Interior Finishes

Once rough-in inspections are passed and insulation is in place, the interior of your home takes shape rapidly. This is the most choice-intensive phase of the project. It is also where change orders frequently balloon costs.

Interior Finish Checklist

• Hang and tape the drywall.

• Install interior doors, trim, and moldings.

• Paint all interior surfaces.

• Install hardwood, tile, or luxury vinyl flooring.

• Install kitchen and bathroom cabinets.

• Install countertops and backsplashes.

• Install plumbing fixtures, including toilets, sinks, and faucets.

• Install electrical fixtures such as outlets, switches, and lighting.

• Install major appliances.

• Install carpet in designated areas.

Document every change order in writing before authorizing the work. Verbal agreements about scope changes are a primary source of construction contract disputes. If your contractor asks you to approve additional costs on the fly, slow down. Get it in writing and make sure your lender is aware if the change affects your draw schedule.

Phase 8: Exterior Completion and Landscaping

While interior finishes are underway, exterior work concludes the building envelope. This final preparation readies the property for move-in day.

Exterior Completion Checklist

• Install siding or exterior cladding.

• Install gutters and downspouts.

• Pave or pour concrete for the driveway and walkways.

• Install garage doors.

• Grade the lot for proper drainage away from the foundation.

• Install the septic system or connect to the municipal sewer.

• Seed or sod the lawn, then install landscaping.

• Install exterior lighting and your address numbers.

Phase 9: Final Inspections and Certificate of Occupancy

The final inspection phase is where the municipality’s building department verifies that your home meets all applicable codes. They confirm that all permitted work was completed correctly. You cannot legally occupy the home without a certificate of occupancy. Furthermore, your lender will not convert your construction loan to a permanent mortgage without this document.

Final Inspection Checklist

• Schedule the final building inspection with your municipality.

• Pass the final electrical inspection.

• Pass the final plumbing inspection.

• Pass the final mechanical and HVAC inspection.

• Pass the final insulation and energy code compliance inspection.

• Obtain the official certificate of occupancy.

• Conduct a final walkthrough with your contractor.

• Compile a comprehensive punch list of deficiencies.

• Confirm the contractor corrects all punch list items before you issue final payment.

The final walkthrough and punch list process is your last opportunity to identify deficiencies. Walk every room methodically. Test every outlet, every fixture, and every appliance. Note anything that does not match your contract specifications and put it in writing. Do not release final payment until the builder resolves all punch list items to your satisfaction.

Phase 10: Closing, Deed Recording, and Post-Move-In Protection

For many new builds, the final step is a closing similar to a traditional home purchase. This is where title transfers, your permanent mortgage funds, and the county records your deed.

Closing and Post-Move-In Checklist

• Review the closing disclosure with a professional before closing day.

• Confirm a final title search is clear of any mechanics’ or materialmen’s liens.

• Obtain your owner’s title insurance policy at closing.

• Sign the deed and ensure the county register of deeds records it.

• Obtain all builder warranties in writing.

• Secure homeowner’s insurance effective from the date of closing.

• Collect all appliance manuals, warranty cards, and maintenance records.

• Register with your HOA if applicable.

• Update your address with the post office, DMV, and financial institutions.

One area that surprises many new-construction buyers is mechanics’ liens. A subcontractor who was not paid by your general contractor can file a lien against your property. This can happen even if you paid the general contractor in full.

Collecting signed lien waivers at each draw stage is critical protection. Your title insurance policy also provides important coverage here. Learn more at the Soble Law Title Insurance Resource.

Protecting Yourself Legally Throughout the Build

Throughout every phase of your project, legal protection comes down to two things: good contracts and good documentation. Every agreement with every contractor should be in writing and signed by both parties. Every change should generate a written change order, and every inspection should be documented. Finally, every payment should match the draw schedule in your construction loan.

As someone who has spent decades working on Michigan real estate matters, I can tell you that most disputes are not caused by bad contractors. Instead, they are caused by vague contracts, undocumented changes, and missed inspections. The good news is that almost all of them are preventable with proper legal preparation upfront.

If you are planning to build in Michigan, I strongly encourage you to consult with a real estate professional early. Our team regularly assists clients with construction agreements, purchase agreements, title matters, and construction disputes. Visit the Soble Law Real Estate Practice or call us at 888-789-1715.

For related guidance on legal documents you will encounter during the build, see also our articles on Purchase Agreements, Deeds, and the Michigan Seller’s Disclosure Act.

Frequently Asked Questions

What are the main stages of building a new home? Building a new home typically follows ten major phases. These include pre-construction planning, financing, permits and legal documents, site preparation, framing, rough-in mechanical systems, interior finishes, exterior completion, final inspections, and closing with deed recording. Each phase includes multiple individual tasks and required inspections.

How long does it take to build a new home in Michigan? On average, building a new home takes nine to fourteen months from breaking ground to receiving the certificate of occupancy. The exact timeline depends on the size of the home, weather conditions, contractor availability, and permit processing times. Pre-construction planning can add several additional months before ground is broken.

Do I need a construction agreement with my builder? Yes, absolutely. A construction agreement is the most important legal document in any home-building project. It defines the scope of work, payment schedule, change order procedures, timelines, warranties, and dispute resolution terms. Without a written agreement, you have very limited legal protection if disputes arise over costs or quality.

What is a certificate of occupancy, and why do I need it? A certificate of occupancy is an official document issued by your local municipality. It confirms that your newly built home meets all applicable building codes and is safe to occupy. You cannot legally move into the home without it, and your lender will not convert your construction loan to a permanent mortgage until it is issued.

What should I look for during the final walkthrough of a new construction home? During the final walkthrough, test every electrical outlet, light switch, and plumbing fixture. Check that all appliances operate correctly. Inspect all paint, trim, flooring, tile, and cabinetry for defects. Document every deficiency on a written punch list and make the correction of that list a condition of releasing final payment.

How do mechanics’ liens affect new home construction? A mechanics’ lien can be filed against your property by any contractor or supplier who performed work and was not paid. This can happen even if you paid your general contractor in full. Protecting yourself requires collecting signed lien waivers at each draw stage, conducting a final lien search, and obtaining an owner’s title insurance policy.

When should I hire a real estate attorney during the home building process? Ideally, engage a real estate professional before you sign any documents, starting with the land purchase agreement. An expert can review your construction loan documents, negotiate your construction agreement, advise on change orders, review the closing disclosure, and ensure the county properly records your deed. Early legal involvement is significantly less expensive than resolving disputes after the fact.

About David Soble: David is a seasoned real estate and finance attorney with more than 35 years of experience, combining his background as a “big bank insider” with a commitment to demystifying complex legal issues for his clients. As the founding attorney of Soble Law (Soble PLC), he leads a specialized team in Michigan and Ohio that handles real estate transactions, contract disputes, probate, and financial litigation. Known for a practical, no-nonsense approach and peer-rated excellence (Martindale-Hubbell AV Preeminent), Soble and his team strive to protect clients’ property and financial interests with clarity, integrity, and experience.

Disclaimer: The information in this article is for general educational purposes only and does not constitute formal legal, financial, tax, real estate, finance, probate, or any other professional service or advice. Reading this content or contacting us does not establish an attorney-client relationship. Every situation is unique, and laws change frequently, so you should always consult with your own qualified attorney or professional advisor before making any decisions.