Let us Begin, Shall We?

Everything comes in steps… this is so true when building a home!  Originally, Mike and I tried to get a construction loan when we were looking at a different piece of property.  We wanted to purchase this piece rather quickly so we could get it up and weather tight before snow flew.  With the bank we were going through (which came highly recommended but we had a horrible experience with) it just wasn’t going to happen.  We got our deposit back on the land we were trying to purchase through the bank and went on our merry way since it seemed impossible to get a quick loan, and even a land loan at that point since it was going to take MONTHS to get!

So that’s when we found out about the land we just purchased.  We were lucky and knew the guy that was selling the piece and was willing to do seller financing on it.  No banks, but still a process.

Really, it’s a smart thing to try to buy the land first, sit on it for a while, and then roll it into a construction loan.  Our meeting on Friday went really well.  We went to our own bank this time and we had been prepared with questions and information for the woman that met with us.  She told us that we really did our homework!  One of our biggest concerns is whether we could use the land as collateral, and she assured us that we could.  It’s interesting how construction loans work- and here’s why.

No matter what bank you go to, their construction loan program is different.  Some will give you 90% of the value of the home, some will give you 80%, and some will even give you less.  They require a lot of information up front before they give you the actual loan.  For instance, we need to get together the material list (which we have already, just not in their format), a septic approval, and a building permit, my last pay stub, and at least two years of tax information.  All simple things really, but let’s put this into perspective.

Mike and I have spent hours putting together our material list and getting prices on the materials and all that good stuff.  I can’t tell you how many hours we have spent doing this already.  Even though we have this to start, it may change.  For instance, the town in which we are building does not have their own building inspector so they require us to get an approval from the state on energy related things.  We were going through this energy sheet last night and have had to change a few things already due to U-ratings or R-values (U-ratings seem to be related to your doors and windows and the energy efficiency of these and R-Values are your insulation and the like).  Reading through some of their requirements gave us both a bit of a startle.  I’m not saying that we weren’t creating an energy efficient home, but some of their rules did seem a bit silly.  But, we have to abide by the code- AND we have to fill this form out and get approval before we can get a building permit. 

The beginning stages are such a process!  So in order for us to get the septic design approval, we need to get into our land- but in order to get into our land, we need to get the first portion of the driveway put in and have the lot cleared so the septic designer can dig and do a perc test.  In order to get the first portion of the driveway put in, we have to go for a driveway permit, which may also require a State of NH wetlands crossing approval, depending on what the road agent says.  The “wetlands” on our land isn’t really wetlands either though- it’s seasonal run-off.  It would be silly to not put a culvert in for something that gets wet like it is currently for a couple months out of the year.

So where do we start?!

Well, we found the most important pins on our land yesterday, which is a good start… and I have a call in to the Road Agent for the town in hopes that he can meet with Mike so him and Mike can discuss the driveway and the plans thereof so we can skip the extra time it will take to get approval from the state.  Hopefully from there we can have Mike’s Cousin draw the design for the driveway and we can submit that to the town with the check for the permit and get that approved.  Once that’s approved then at least the ball gets rolling.

In the meantime, we’re trying to fill out the energy efficiency form (which has me confused because of the hieroglyphic like lingo, but at least Mike knows what most of the items on the list mean) and try to get that approved so we can add that to the building permit and submit that once we get the septic stuff done.

It’s all a process… but at least we are starting now so we can hope that the house could potentially be completed by Thanksgiving. It would be so nice because I want Thanksgiving at my house this year!! 

Pursue some path, however narrow and crooked, in which you can walk with love and reverence.  - Henry David Thoreau

Beginning to build your list for price quotes

All I can say is I'm glad that I have someone that knows what they are doing!  Without Mike and his dad, I wouldn't know what to do about putting together a list of materials that we would need TO build a house and how to figure things like studs and TGI's and the like.  

So one of the things that we need to pick out to get prices on (other than the kitchen which we pretty much have all ready to go for quotes) is flooring.  So we started looking at hardwoods and tiles... we'll have carpets in the bedrooms (I hate waking up and putting my feet on a very cold floor in the morning!).  We found two beautiful hardwoods that we really like.  

Mike really took to the Brazilian Koa (below) and I love it too!  It's beautiful!

But it's expensive... $6.29/ft.  Ok it's not SUPER expensive but for the area we are looking to put it in, we'd be spending quite a bit (it's a rather large area).

We also really liked the Spiced Hickory.  We thought we would put this downstairs- but the more we talked about it the more I realized that really, we don't need to spend a ton of money on really nice flooring for the finished walk out basement... because in reality most of the time, it will just be us seeing it..

So I started looking for other options and stumbled across two beautiful BAMBOO flooring options... and Mike liked them too!  They were almost 50% the cost of the hardwood flooring and they are about 2-3 times harder!  check these out and tell me what you think!

The first one reminded us of the Brazilian Koa- so we may just do that for the upstairs dining/entry area.

The second one we found would be perfect for downstairs... more durable and looks a little like the spiced hickory...

So I think we are settled on that but it sounds like we may go explore Lumber Liquidators this weekend so we can actually see and feel the products... then we will go to HD and check out tile... you just can't really make a decision without seeing it first!  Though, I found a beautiful Gray Slate tile that I think would be perfect for the Mudroom area! :)

More to come!  For now- this is all the time I have to post! :)

Clearing the Lot...

One of the things that Mike and I have been discussing recently is how we are going to clear the lot.  Initially we were discussing doing it ourselves (with help from friends and family if they wanted to come help), but we also discussed having someone come in and clear it for us.

It's sort of a catch 22 for us.  On the one hand, if we clear it ourselves, we save money.  The con, however, is that we also will be spending many weekends over there cutting and clearing and then- what do we do with the logs?  On the other hand, if we have someone just go in with their equipment, it could be done in the matter of a few days and they'll clean up after themselves and take some of the logs.

We both were under the impression that maybe we had enough logs to come clean.  So, my Dad knows this guy who's a logger and can log what we want in a quick fashion and be out of there in no time.  So we called him!  He's an extremely nice guy and even offered to help if we decided to do it ourselves.  He told us upfront that there wasn't enough logs for him to just come in and clean up- so we would have to pay.

So- do we just do it ourselves or pay him to come in and do it.  Again, a catch 22.  Plus there's the fact that we don't have a driveway in yet- so it's not like he can just go in- he'll have to push some (as would we) in order to get back there with his equipment.  We have a small section of wetlands that we would need to cross too in order to get back in there... now it's all frozen so it shouldn't be a big deal, but we just don't know what it will require.  The logger told us that he could help us with that too- and get all the permits we would need for him to clear.  He would just need us to meet him so we could sign the permits since it's not his land.

I think in the end, it would be best for him to come and clear the land that we want.  It's still a catch 22, because I was hoping to use that money to put the driveway in, but at the same rate, we can't do that without clearing first anyways and it could take us a couple months of weekends to do it.  The last pro to having him clear is that he's only going to charge us about half of what he normally would- but that's because of my Dad! :)  Sometimes it really pays off to know people!

What sunshine is to flowers, smiles are to humanity. These are but trifles, to be sure; but, scattered along life's pathway, the good they do is inconceivable.
Joseph Addison

When do you know when to use a real estate agent?

We originally started looking for land back in the May/June time frame in 2010.  We had asked one real estate agent about a couple pieces of properties and I don't think she took us seriously.  The one time we finally DID meet up with her, she stayed for maybe 5 minutes to show us the land then drove off.

We were lucky to find another real estate agent that was WAY more into helping us find the piece of property for us.  She came and spent time with us on two occasions at two different properties and was just amazing.  In fact, I was really attached to her.

With us buying land in a private sale, we didn't need her- and in fact, the seller didn't want to use any real estate agents whatsoever.  It made me feel really bad about buying it without her guidance, even though the land we bought was from a family friend and she had no hand in helping us find it.  I mean, I know she's in it for the money and such, but she has such a great personality and everything that it was hard to do all this without her.  She also tried to help us so much to find something that would fit us.

She sent me a message over the weekend to see how we were doing and that sparked my uh-oh we haven't told her yet reaction.  I had to ask Mike how I should handle it.  I feel bad telling her because we did it without her and she's been so great helping us- but at the same time, it's not fair to just ignore it and not say anything and keep her thinking that we are still looking and such.

All in all, I feel bad and I hope she doesn't think poorly of us.  Again, I know she's in it for the money- but she really was great and I'd recommend her to anyone and everyone looking to buy or sell in the area! :)

Learning along the way...

Light Shopping Anyone?!

You know, I never knew that there were SO many options for lighting for a house.  Well, ok I did, but I never thought that the decision would be so hard.  Mike and I went to Home Depot on Saturday to look at the different lighting options and get some ideas for our house.

If you don't know already, our design for our house includes cathedral ceilings in the kitchen/dining area.  So Mike wants to put a sun tunnel in the kitchen area to allow for more light (because lets face it, most kitchens have one window above the sink and that simply doesn't have enough light coming through! :) ).  So with the sun tunnel we are also going to put in 5" eyeball trim lights up in the ceiling.  They'll be flush with the ceiling but be able to move around and such so that we can direct the light appropriately.

One of the things we wanted was a big ceiling fan to cover both rooms.  I figured we'd need two because of the amount of space we are to cover with the fans.  Well, we found one that is 68" across... it's the BIGGEST fan we've ever seen (http://www.homedepot.com/h_d1/N-5yc1v/R-100630835/h_d2/ProductDisplay?langId=-1&storeId=10051&catalogId=10053).  Mike made this decision and it makes a lot of sense for me.  Plus, it helped me decide on lighting for the dining area!


I had found this really neat chandelier at Lowes and I really liked it.(http://www.lowes.com/pd_258947-76219-EJV8113_0__?productId=3295176&Ntt=wheat+light&pl=1&currentURL=/pl__0__s%3FNtt%3Dwheat%2Blight).  I was unsure about how it would look in the house with the ideas we have for the kitchen area.  We really need the lighting to flow with the design of the kitchen since there will be no structure in between to separate out the kitchen and dining areas.  I really liked the Wheat Chandelier when I first saw it because it was so unique and sort of country-ish but I wanted Mike to like it too.  With his decision on the fan, it just makes perfect sense now to go with the light I like.

The problem is- we may not be able to wait to purchase what we want because it may not be available later on.  That's where our awesome gift cards to Home Depot and Lowe's come in.  We can basically take 50% off of the lighting fixtures that we want to purchase by using our gift cards!  So Mike and I will hopefully be able to go on Thursday to Lowe's and Home Depot and pick up the fan and chandelier that we want.  As for the other lights, we have no doubt those will still be around in a few months when we begin the building process.

It gets me excited to start this process- and the more we can pay out of our pockets now, the less we will pay in the mortgage in the end.  The gift cards that we got from our parents this Christmas is going to help us a lot (thank you again to Mike's Mom and Dad and my Mom and Dad!  Best Presents EVER!).  The only thing is, we can get the lights and put them into a storage area- but then we can't even hang them and look at their prettiness! LOL!  Oh well, all things in good time right?!


Like our Love, it comes one step at a time.

First Payment Down, a Small Setback, but a lot of Good!

First payment down, and we're already starting to plan the next steps. With the Holidays out of the way, you would think the next steps would be easy to figure out. Maybe not as easy as we thought- but again, I think if Mike and I can make it through this, we can make it through anything.

I called the town for more information on what we need for a driveway permit. We know that we will likely need a culvert and potentially some special permit because we have to cross a small section of wetlands- which I have no problem with. Here's the problem. When I called and talked to the selectman's assistant (which was very nice by the way) he informed me that the road agent that would be approving the driveway will likely not be able to take a look at it until May, when there is no snow and he can view the land more clearly since they know there is some designated wetlands at the beginning parts of the driveway.

It's kind of discouraging because we were hoping to get the driveway underway by March- or even earlier than that. Actually, we really wanted it done ASAP so we can get back in there with some equipment and start clearing the lot. We want to get the trees out of the way too and do the landscaping that we want to do so we can properly set up the house how we want it.

This just pushes the beginning stages back. Mike still thinks that as long as we start near the beginning of May, we can probably be in it by the end of August or sometime in September. I'm glad he's so enthusiastic and supportive about all of this- because let's face it, I'm no expert and have NO idea how long most of this stuff will take- but we will be doing it at nights after work and on the weekends (goodbye social life for a half a year or so!). In reality, it's totally worth the blood and sweat we will shed in the process.

My not so fun feeling is that this is going to be more headache-y throughout the process than we are bargaining for. I guess that's all in building a house anyways. Going through the beginning paperwork for the driveway and building permits alone requires some extensive work. At least we know where we want to put the house, what kind of house we want to build, and where we want to put the driveway. There are other parts that we have to unmask, like a plot plan including where we will be putting the septic- which by the way must be designed by a designer and then approved by the state.

We also have to start looking at going back to the bank and seeing if they will give us a construction loan. Mike seems to think that we won't have a problem with it- and I hope he's right! Again, he's being my steady rock in this process- the light that's keeping me positive. I just see the headlines in the news about what the banks are doing and it makes me nervous. Maybe if they see that we are already undergoing the beginning processes and the fact that we actually own the land- maybe that would change things and give us a far better chance.

In either case, I know everything happens for a reason. Maybe the reason that we can't start till May isn't JUST because of the wetlands area in the front piece, maybe we are in for some serious weather, and this is just a blessing in disguise.

All in all, you just got to have faith in everything that you do. There's a reason for everything and there's a time for everything. I just keep hoping that time is on our side! :)

Officially Land Owners!

So- it’s official!  We own Land!  Just over 8 acres of dirt, rocks, and trees!  Oh ya, and the occasional deer, chipmunk, and squirrel… and probably other creatures of the wood!

It was a little nerve wracking to say the least, but the one thing I can say is: I couldn’t have done it without Mike.  He’s been my security blanket throughout this process- there to reassure me and to make me feel much more at ease.  I was freaking out a little bit when we were just trying to close the first time.  Mind you, our lawyer didn’t see the paperwork until the day before Thanksgiving and then it was right when he was leaving for the holiday.  The closing was supposed to be the following Monday.  We got to push it back about a week and a half because of it.

So- what’s the paperwork you’ll see??

For one- no matter if you are doing a private sale or not- you will see a purchase and sales agreement in the beginning.  This confirms your interest in the property and it always has a check of some amount attached.  When we were looking at a different piece that we really liked, we signed the paperwork and gave a $1,000 good faith deposit.  This ensures that we aren’t just screwing around and that we are truly interested.  Too many people get to that point then back out, making it harder for the seller to sell the property while your interest is there.  The good faith payment is lost if you don’t follow a few steps. 

In our case, the steps were to get financial backing- and it had to be in the form of at least 3 denial letters- to prove that we tried several means.  We had a really hard time securing a personal loan for the first piece (and it must’ve been fate, frankly!).  We were told- we didn’t have enough credit history, that I was at my new job for too little of a time, and we were also told at one point that our debt to income ratio was too high…. ??? Really?  I still crab about this because I could’ve been unemployed for at least a year and still covered all my bills- AND Mike’s.   It’s not like we both owed a butt load of money to anyone and our credit spending is minimal.  We even tried to have Mike’s Dad cosign with us- and we were still told we didn’t have enough credit history- when we inquired about what they meant, we were told it wasn’t the right type of credit.  Apparently, there’s different types of credit now.  All they had to say is that they weren’t loaning and not put the blame on us.  It was ridiculous!

Anyways! I digress!

Since you know that we didn’t do this through the traditional means, I’ll tell you about what we saw as a private sale purchase.

After the Purchase and Sales Agreement, we also had several forms. 

The Real Estate Transfer Tax Form:

This form has information about the seller, buyer, lot, and price that the lot is being sold at.  The State also has a tax rate that it employs when property is bought and sold.  This is usually split between the seller and the buyer.  So- we had to sign off on the tax and on the information that was there- to make sure it was accurate.

Exhibit A

Exhibit A may be called other things as well, but this is usually an explanation of the lot that you are purchasing.  It has quite a bit of terminology that, frankly, I don’t understand or care to.  It seems mumbo jumboish- but always make sure that it’s the correct piece! 

HUD

US Department of Housing and Urban Development.  This is a document with all costs and a breakdown of the costs.  Your final down payment and closing costs are all listed on that.  Our closing costs included things like the Tax from the Transfer Tax Form,  Title Charges (for the title search, which is always done before a piece is bought or sold!), Title Insurance (if you opted for it- and we certainly did- you just can’t be too careful!  You could lose your property if years down the road someone finds out that there was a lien on the property- so spend the $165 or whatever it costs- it’s worth it!), The Deed Recording Fees and Mortgage Recording Fees.  A lot of this information goes to the town and state so that it’s all updated in the records as to who owns the property.  Those are just a few things- we also had lawyer fees of course.

Department of Revenue Administration Inventory of Property Transfer

This document also has seller/buyer information along with more detailed explanation of the property.  It tells what type of property (residential, commercial, etc), if it’s Land Only (which ours is),  what kind of features it has (is it waterfront property?), if there is a structure on the property, etc etc.  It’s just a necessary piece that also gets filed with the state.

Tax Proration

We saw this form, but I have no idea if you will too if you are going through a bank or traditional means!  I’m sure you will see something like it.  The Tax Proration document is a document outlining what taxes has been paid for the current 6 months (because usually tax payments are due every 6 months).  In our case, we had to pay a fraction of this since the seller pre-paid the taxes for the land. 

Title Insurance Offer

The title insurance offer is the form that tells you exactly how much your title insurance will be.  I must say- no matter what- I recommend getting this.  It’s not too expensive and it’s a 1 time fee.  So what, you pay 150-250 bucks or whatever… at least that covers you!  As I explained previously, it’s worth not losing your land or house because of an issue found later down the road.

We also had the following since it was a private sale.  I honestly can’t say that you will EVER see something like this, but I have no doubt that you will see something similar if you are borrowing from a bank… and it’ll probably have a lot more legal mumbo jumbo than ours did!

Mortgage Deed

We had a Mortgage Deed, of course, because it was a private sale.  This sale is also “financed” by the seller.  So we are paying the seller on a monthly basis for the land.  Since we had such a hard time with the banks, we were lucky that this individual opted to do this with us.  Of course it helps that he works for my Dad and Mike’s Dad use to do some construction work for him. 

Promissory Note

As the name implies, this is a note that promises payment to the loan holder (in our case the seller).  It tells how many payments, what the payment is each month, when the payment is due, and the terms to payment, like what happens if you default.

Warranty Deed

This is just a document we received that said that we were purchasing the land from the seller.   It was pretty basic really.

That was all the documents we saw.  If you went through the Traditional Means, I’m sure you would see a lot of the same things I saw plus more.  Banks tend to flood you with paperwork- and sometimes I find it tedious to read all the fine print- but remember this: it’s worth reading because you never know what can injure you!

In the end, we signed all the paperwork- and now the property is officially ours!  After quite a few months of banging our heads on our desks, we finally did it!  I hope this is the hardest part.  Even Mike’s Dad mentioned several times that the economy being the way it is has made it near impossible for us to accomplish such a feat.  Fortunately, we found someone that really wanted to sell his property and was really willing to work with us and finance it for us! 

So- us not getting the other piece was fate.  The piece we just bought is nicer, in a better location, and has more usable land!  The other piece was 12 acres… the one we just bought was 8.  Just enough to not see your neighbors- YAY!

Now comes the fun stuff… like… picking out your kitchen cabinets! Too many choices coming!  I’ll keep you all informed!