There's never been a better time to build a new home. And once you decide to take the plunge, right away you'll notice some key differences between building your own and buying a pre-built home. For example, you won't find the cost of your home simply by looking at a Realtor's Web site.

Here are some general tips for getting your arms around home construction financing:

Use online tools to calculate estimated cost of constructing your new home, using information you've obtained from conversations with local builders. When determining your home's budget, you will need to decide on your preferred size, location, quality of materials and labor, and amenities. Right here on dreamhomesource.com, you have access to a handy cost-to-build calculator, Based on any of the site's available plans, the calculator researches the material and labor costs for the construction of that home. And unlike generic calculators based on national averages, our tool returns a figure that is ZIP-code specific to where the home will be built.

Once you have your cost-to-build estimate, you're ready to get a pre-approval from a lender. An experienced home construction/mortgage lender will have a variety of loan options, and will work with you to choose the loan that's best for you. One option is a "two-time close" loan, where you close on one loan for construction, and a second loan for your permanent mortgage. Or, many people choose what's called a "construction-to-permanent" loan, which is a two-part loan (with a single closing) designed specifically for people who are building a custom home. The first part of the loan is distributed by the lender in periodic "draws" as the project crosses certain milestones, such as the construction of the foundation, framing, roof, and so forth. When the home is finished, the construction-to-permanent loan converts into a permanent mortgage.