Tuesday, August 12, 2014

loan upate

Eep!  The bank approved our funding.  WOOHOO! 

This is a huge relief, especially considering we already had one bank turn us down because of the shared well.  They didn't want to fund a property that didn't have a well, despite our legal contract, a.k.a. shared well agreement.

Next steps:
  • initial appraisal (This is already ordered, and expected to occur in 3-4 weeks.  This is when we'll find out how much the land is worth {we own it outright} and how much cash we'll need to put down.  A high appraisal means less cash required from us {but higher property taxes each year}.  Fingers crossed for a nice, high appraisal!)
  • closing on the construction loan (cash required, followed by monthly, interest-only payments)
  • dig!  Let's break ground, baby (there may be opportunity to start this before closing, and potentially before the appraisal comes in.  Long story short, it's up to us on how much risk to assume {again, fingers crossed for a high appraisal!})  edit: on second thought, I think we're going to wait for the appraisal before breaking ground.  we're not confident what the land will appraise for- it's been in the family a looooong time and who knows what a parcel that BIG is really worth.  The bank could definitely go either way on this one.  Too much risk for us to jump in before we know.