All steps seem to be huge steps. Last night was no exception. Our loan agent brought the paperwork over for us to sign. He said it was the first time he had closed a loan in a camper :-) We signed all the paperwork and are now ready for them to start building!!!
About the loan we got - We had to roll the remaining balance of our land into the loan. However, because we had equity in the land we were not required to have any additional money at closing. The type of loan is a construction loan that will automatically convert to a conventional 15 year mortgage. The APR during the construction phase is 4.14% which saves us some money because our previous land loan was at 7.5%. Our closing cost to close the loan were $4,800 but we will not have any additional closing costs when we convert it to a traditional mortgage. So all will be well if we stay within the budget. From how it was explained to me last night, if it costs less than that to build they will give us the remaining at the end of the consturction phase and then we can turn around and pay it on principal. The amortization and loan amount will not change now regardless of what it costs to build. Of course if it goes over that means we would need money out of pocket to pay for any overruns.
As I am typing this early in the morning.... The dogs are barking and what do I see? More ICF blocks being delivered. A backhoe is going to be delivered tomorrow!!! I am just so excited and can't wait.
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