I can appreciate that ill have to buy the lumber but I read in a post somewhere that you can process most materials yourself , has anybody done this?
Hi petester - welcome to the forums .... I gotta get you a fishystick ... just a sec...
You can mine the stone, clay, and iron ore you'll need without spending money. You can also improve the disposition of certain mill owners so they let you cut the lumber for free (I think Morthal was the last place I got lumber for free), but not all lumber owners.
You can sometimes find straw as loot in a dungeon but I've never found glass.
You can get goat horns for light fixtures by hunting goats and also use animal hides for leather and leather strips.
I think, with the exception of glass, that's everything (though you'll need more exotic materials for building your own arcane enchanter and alchemy station).
Good luck!
Edit: Here's your fishystick! http://images.uesp.net/c/c4/Fishystick.jpg
Also - you'll need to mine a bunch of corundum, in addition to iron, for making locks and steel ingots.
I have found everything as loot, though glass does seem to be the most rare. Make sure you check barrels, dressers, nightstands and all the other types of furniture, as I seem to recall that is where I find the glass and other things most. I do tend to look into everything, specially when I am building a home.