As part of our construction loan, the bank ordered a pre-construction appraisal on the property. Basically, this is an estimation of the value of the property we planned to build based on today’s values and our specific building plans.
In order to get the full loan amount, we needed the appraisal to indicate our house value would be $580,000 or higher. Since we’ll have spent about $575,000 between the land and the construction costs to build the house, we were hoping the value would come in even higher than that (obviously, we’d like the house to be worth a lot more than we’re spending).
The appraiser called us earlier in the week to get a bunch of information and he completed the appraisal a couple days ago. The value came back at $626,000. That means that if we stay on budget, we’ll have over $50,000 in equity when the house is built.
Here is an edited (to remove extraneous material) copy of that appraisal (Click to View):
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Hopefully the rest of the loan conditions will be cleared this week and we can schedule the closing of the loan for sometime before construction starts.
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