Progress Report: Construction is 67% Complete

Woohoo! With the latest draw request, our new house is 2/3rds done. This reflects an additional 13% completion based on our bank’s draw schedule, in addition to the previous 17%, 22%, and 15% draw requests.

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Financial
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Progress Report: Construction is 54% Complete

I just received our 3rd draw request. As of now, our house is 54% complete, which represents an additional 15% progress based on the draw schedule of our loan. This is on top of the initial 17% and subsequent 22% draws.

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Financial
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Progress Report: Construction is 39% Complete

As of this writing, our house is 39% complete. Once again, that’s an oddly specific number. It corresponds to an additional 22% progress based on the bank’s draw schedule, over and above the 17% from the initial draw.

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Financial
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Progress Report: Construction is 17% Complete

Just a quick update that our house is now 17% complete. Yes, that’s an oddly specific number. It comes from the bank’s draw schedule, which specifies the percentage that each stage of the build process accounts for.

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Financial
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Title Insurance When Building a House

When we closed on our lot, we had a decision to make re: title insurance. We paid cash for the lot, so title insurance wasn’t required. But just because it’s not required doesn’t mean it’s a bad idea to have a policy in place…

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Financial, Legal
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Running Into Rock When Digging the Basement

Hmmm… We just received the following missive from our builder:

“If you’ve been out to the lot, it’s probably obvious the amount of rock we’ve run into. We’ve incurred extra expense, though it hasn’t reached the level of ‘unusual expenditure’ yet. That said, continued problems with rock could create some additional cost.”

The main concern from this point forward is that we might run into trouble when installing the septic system. This includes excavating for the septic tank itself and also running the drain lines for the septic drainfield.

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Construction
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Closing Our Construction Loan

At long last… The appraisal on our house came back at the end of last week, and our construction loan has since been approved. We were thus able to close on the loan this morning and give the builder the green light.

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Financial, Getting Started
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Buying Our Lot: Closing Process and Fees

Well, we just closed the purchase of our lot. We had hoped to close on both the lot and our construction loan at the same time, but the gods (and the appraiser) conspired against us. Thus, we closed the lot today and will close the loan (and start building our house) soon.

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Financial, Legal
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Signed the Contract to Build Our New House

This is just a quick note to say that we just signed the contract to build our new house. Woohoo! Pretty exciting stuff. Prior to this, we spent 2-3 weeks discussing various details with the builder and going back and forth on overall pricing, construction allowances, contract wording, etc.

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Financial, Legal
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Example Bank Draw Schedule for Home Construction Loan

In talking about construction loans, I mentioned the existence of a “draw schedule” that specifies how much money your builder can request at each stage of the build process. While there may be slight variations from bank to bank, I though an example would be useful.

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Uncategorized
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