Tuesday, December 11, 2007
Not-so Patiently Waiting
The real estate, mortgage lending and construction loan business are such a mystery to me. Every time we have gone to buy a house, it has seemed we are the first people ever to be buying a house with a mortgage- like we are inventing and testing the process which is changing as we go along and is excruciatingly painful.
We were supposed to close on our house today and it didn’t happen. It’s frustrating having absolutely no control. I believe our mortgage broker and realtor are doing everything they can to make it happen, but the forces are against them.
Lesson #1: We originally wrote our purchase agreement to close 4 weeks from the date of the offer. We wanted to start construction before the ground froze and the sellers agreed. In the process of finding the best loan for our situation, we quickly realized that we needed about 8 weeks. We had to agree to pay the sellers a per diem amount for every day beyond the original close day we suggested. Next time (although there won’t be a next time), we would just use the standard 8 weeks and then work to move it up if possible.
Lesson #2: The closing cost will always go up.
On a good note, the drawings were submitted to the city for permit review. There were a few calls and comments, but nothing too major yet. They were curious why the roof was structured for such a heavy load. I think they thought we were going to be hosting parties up there. It’s actually structured for an addition 29 lbs per square foot for the green roof.