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.
We ended up requesting a $400,000 construction loan, which resulted in a loan origination fee (calculated at 0.5% of the loan amount) of $2,000.
Overall, the closing costs looked like this:
- Origination fee: $2,000
- Flood determination: $10
- Deed release fee: $12
- Attorney’s fees: $200
- Appraisal fee: $400
- Total closing costs: $2,632
We actually closed the loan at the bank, without an attorney present, so those attorney’s fees are just to compensate the attorney for providing an official opinion on the title. Given that we had already paid for the title search when buying the lot, that’s a bit of a double-dip.
Oh well, this extra title-related cost was an unavoidable consequence of buying the lot and then closing our construction loan separately.