Your explanation isn't working. If I make a house, does that mean I can't live in it while I'm making it or afterward? (Granted. Unusual to live in a house while making it, but I knew people who lived in their basement when it really only was a basement. They were going to make the rest of the house as they could afford it. lol) You're saying God can't be in something he already made. Why not?
The Hebrew verb translated “created” (""bara"") in Genesis 1:1 has as its primary definition: “bringing into existence something new, something that did not exist before.”
The proclamation that God created ("bara" something, never before, brand new) the entirety of the heavens is stated seven times in the Old Testament. (Genesis 1:1; 2:3; 2:4; Psalm 148:5; Isaiah 40:26; 42:5; 45:18).
A few verses that seemingly suggest God lives outside of our universe
The Bible speaks of 3 different heavens.
Two are in our universe. Another is where God dwells.
Genesis 1:1 says that God created "the heavens" .
The 1st heaven is the atmosphere around the earth. Where birds & planes fly.
The 2nd heaven is moon, stars, galaxies etc.
The 3rd heaven is where Gods throne is. And exists outside of our observable universe.
2 Cor 2:2 I knew a man in Christ above fourteen years ago, (whether in the body, I cannot tell; or whether out of the body, I cannot tell: God knoweth
such an one caught up to """the third heaven""".
Deut 10:14 Behold, the heaven and the heaven of heavens is the LORD'S thy God, the earth also, with all that therein is.
1 Kings 8:27 But will God indeed dwell on the earth? behold, the heaven and heaven of heavens cannot contain thee; how much less this house that I have builded?
2 Chronicles 6:18 But will God in very deed dwell with men on the earth? behold, heaven and the heaven of heavens cannot contain thee; how much less this house which I have built!
Eph 4:10 He that descended is the same also that ascended up far above the heavens, that he might fill all things
Psalms 24:7 Lift up your heads, O ye gates; and be ye lift up, ye everlasting doors; and the King of glory shall come in.
Jacob's Ladder leads to a Gate that opens the door to the 3rd heaven. Gen 28:11-13 16-18
One day soon, God will again, open that gate. And we will see:
Revelation 4:1 (A) After this I looked, and, behold, a door [was] opened in heaven:
Rev 21:2 And I saw the holy city, ""the new (Heavenly) Jerusalem, descending out of heaven from God"", all arrayed like a bride beautified and adorned for her husband;