Not a whole lot going on, but at least we are budging off the starting line a bit. The project (the house) is completely out to bid. Which means it is in the process of getting bids from three different contractors for each phase of construction (from the demo and foundation, all the way down to door knobs). When done, hopefully this week or next, we will know exactly where we stand in terms of cost. Hopefully, it is still in line with the orginal projections. If not, we will have to make any needed cuts. As always, I am free to bid portions out myself, or simply choose to do that part on my own (ie, save money).
Once bidding is complete will officially start the permit process with Naperville. We have already started some of the background work. Called Nicor to come out and disconnect gas completely (can take up to 8 weeks). Also delivered our 'Intent to Demo' letters that Naperville requires to all residents within 60 feet of the property. Pretty much just a courtesy gesture - but if anyone requests, we need to meet with them and answer any questions they have. Later on, once demo is at hand, we need to notify those with 250 feet (which is quite a bit on a grid style city layout).
Also working on construction loans. Was a bit concerned given the market has tightened up, but appears some of the media hype is overblown, as so far no problems. But then again, I don't think anyone with good credit or income would - I think all you hear about on the news is the 1% having issues.
We are approved with one lender for the amount I desire, but still shopping around, as construciton loans vary widely - much more than standard mortgages. The biggest difference is in structure. Can either do a 1-close loan that lumps in your eventual 30-year fixed mortgage with the construciton loan. Very easy, but often rate can be a bit higher on back end 30 year fix and you can get stuck in a jumbo due to the intial construction loan exceeding conforming limits. I would prefer a two loan option - which is a seperate consturction loan and then a seperate 30 yr fix. This is more risky in that it requires two closes, but can save money on rate and can then shop the 30yr fix around to get best deal. Also can avoid any jumbo crap and can avoid having to escrow taxes - which is often not as easy in a one-close depending on the initial amount borrowed. In theory, I intend to borrow the max amount, as you do not pay on it until you use it, so better to have a cushion and not use it, then the other way (no cushion, and a need for a cushion). Hence this max amount can push you into jumbo territory, which is my main issue with doing a 1-close loan. I dont plan to spend the amount I borrow, however, I will be locked into that 'level' on a rate basis.
Updates should be more frequent now (at least I hope there is not a 4 month gap until the next one).
