Options finalized

We just left a meeting with the builder where we finalized the plan and all the options for the house. We talked about the latest additions (drywall and a fireplace), while discussing other ways to save money and get a final price and options we were all happy with. The net result is we settled in right were we wanted to be monthly payment-wise. And we got all the options we really wanted and trimmed out what wasn’t that important. Oh and we even got an expected blessing in additional counter top color choices, one of which Erica fell in love with!

Since the home is going to be a modular house, the plan and all the options get set off to a factory now and we get to “stand” in line. We’re tempted to take a drive down to the factory and see it while it is under construction, but not really sure if that is going to work out.

Drywall and a Fireplace

The builder just emailed me… after working back and forth with the bank for the last week trying to get around arbitrary house value to land value ratio, the end result is the drywall and the fireplace must stay. Rural or not, the house value must match some magical percentage in relationship to the overall value of the house and land. This news meant the deal was off, because we were going to stick to our monthly payment goal and not deviate to make something work that wasn’t right for us.

It is a good thing I kept reading the email… the builder said at the end of the email that he was going to eat the cost of both. We are pretty stinking excited!

We do have to pay for yet another appraisal and, like I mentioned earlier, resubmit everything to the bank once again, but it looks like things are moving again.

Land Closing Delayed

As mentioned in the posts yesterday we have run into a slew of hurdles to clear and there is no way we are going to be able to close on the land today. The realtor contacted the seller and they agreed to extended the closing another month, but they weren’t terribly happy about it and threatened to kill the deal if we have to extend again.

More Bad News

The bank is also apparently fussy about the size of the land. Specifically that the land is large enough that we could feasibly subdivide it. I’m really shaking my head over this. The loan program we are going with is a “Rural Development” loan, but apparently as long as the land is not too rural.

There is some legal finagling to make the bank happy, but this all means that we have to resubmit everything once again and wait another 3 to 4 weeks to hear something back.

The Appraisal of Doom

We had been working back and forth with the builder for several days now and been making great progress to get the land/home package to our sweet spot. We decided had decided to go with a modular home and vinyl covered gypsum panels instead of drywall to save costs, cut down on a variety of upgrades and we were pretty much right where we needed to be… and then the ball dropped. The appraisal came back and pretty much said that in order for the loan to be approved we would need drywall and a fireplace.

The frustrating thing is the land and home appraised with plenty of value to cover the amount for the loan. The gotcha is the bank was not happy with the ratio of the land value to the house value. Ugh… one more hurdle to clear… although to be honest we’re not really sure how to get past this one.

Loan Approved

We received approval today for the loan and some rough numbers we drew together with the builder. This gets us closer to closing, but we still have to figure out a number of things. The biggest one is the amount we were approved for is a bit above our comfort zone and we want to get that down by changing the house plan or removing options. To be honest, we are freaking out a little as the land closing is right around the corner and we want to have the total price down to our target before we close on the land.

Perk Test Complete

The perk test came back. There were a few considerations and limitations on where the septic field can be placed on the property, but the very positive news is the system doesn’t required a ton of engineering. This was a point of concern for us as two properties down required an engineered system in the neighborhood of twenty grand. The part that makes our system a bit more expensive is the leach field has to be set back a good deal from the back of the house, which in turn requires a pump. This isn’t a closed case yet, as the builder is going to investigate some other options and see if there might be another option, but either way we are still without the bounds of affordability.

Offer on Land Accepted!

Our offer on the land was accepted today! Still a bunch of things to figure out, but we are moving.

We are excited because our offer wouldn’t have gotten us a 1/3 of an acre across the border where this property is over 5! Still, we have to clear the perk test hurdle so we aren’t celebrating yet. We are optimistic as the property has an expired perk test that past years ago, but if we fail the new test it would mean an engineered septic system that our budget wouldn’t support.