Another thing to keep in mind is that there will be 'cash' outlays, possibly during but definitely after the build. Depending on your contracts, you may pay separately for site clearing, tree/stump removal, driveway finishing (such as concrete/brick/aggregate to smooth out the ruts), retaining walls, overage on earthmoving (such as digging the foundation or shoving dirt for the driveway), wells/septic fields, fencing, insurances, handling fees [bank], landscaping, exterior finishes, drapes and blinds, and... more. Applying 33% of the expected cost towards the loan is good, but many times you will need another 25+% to cover all the stuff that isn't/won't be in the mortgage contract. Go on-line and learn the definitions and usages of terms such as ARM, discount, points, and amortization... all the jargonese to do with loans. You don't want to have a blank stare when the lender starts using those words. After you are comfortable with those terms, then do as dixiedoodle says, sit down and go over the figures - in detail -- with several different banks/loan institutions. This doesn't waste their time because you are showing responsibility in wanting to understand all the possibilities. BTW, get their figures in writing -- a mathematician or a loan officer might remember who quoted how much for what for how long after listening to a half-dozen different presentations, but the rest of us need to have hardcopy to study later. Be very aware that rates they quote for today may change tomorrow, but you will gain a feeling for the institution's attitude when it does its business, and how good its rates are when compared to others. As also said, a mortgage is an option to borrow [up to a certain amount], it's not cash into your hand. However, you will be expected to pay -with interest- all the monies that are disbursed to the various contractors and suppliers. The interest paid plus the assorted fees are how the bank makes its money... study carefully to see what is to be paid, and when, and how the interest is computed and on what and when. And keep in mind that interest compounds... every dollar you borrow is going cost you from three to twenty times as much to pay back.

Also want to add this: assessed value is NOT the same thing as appraised value. One, assessed value, has to do with how your property taxes will be computed in order to be in line with other properties in the same taxing district. It is often a completely different figure from market value. That it is different is immaterial if all the properties in the same taxing unit are similarly at variance with their respective market values according to the local laws regarding assessments. The other, appraised value, (which is what I think you probabaly meant) has to do with a number determined by comparing recently sold, more or less similar, nearby properties to yours and making specific adjustments based on any differences in time, details and proximity to you, to come up with a predictive number for the likely range of price your house might sell for today. It is the number that your lender will use to determine how much they are willing to lend to you with this property as collateral. Since you mentioned being a first time buyer, I thought you wouldn't mind me pointing out this info. If you really did mean assessed value (taxable value) be aware that your lender may completely ignore that number in favor of the appraisal amount. Loans that pay out more than the contract price (i.e. money to make repairs in addition to the purchase price) are not normal loans and may have some added costs due to higher interest rates or conditions. Be sure to ask about this. Typically lenders will lend up to a certain amount of the appraised value and buyers must come up with the rest. Don't take on more house than you can comfortably swing just because you can "qualify" for more. If you are a two-income household, what would happen if one of those income streams was interrupted? Be sure you understand what it would cost to make those repairs. Would the roof see you through another winter? Good luck! L. PS: Everybody stretches a little financially when purchasing a first house, I think. A little stretch is a good thing (teaches financial discipline), but it should be a little stretch in the context of also having some reserves, just in case the little stretch is a mite too far. If it's a little stretch with no reserves, then you're asking for trouble. We live on a farm that when we purchased it was twice what we had been looking at. We had to really scrape by for awhile. But our definition of scraping by didn't dent our emergency fund, or retirement savings, it just meant we had no money for anything else except necessities, including none for fixing up the house. We just opted to live in it for that time until we had built up a cash reserve to make repairs.

Again - hard to read, but you should consider a direct egress in your FIL's suite in the case of an emergency - right now, in the event of a fire or medical event, the path to safety looks a little convoluted. The closet in that room looks odd - the door entry seems partially blocked by the hanging rod? Or is that a dry cleaning system where the clothes rotate around (I have no idea why I think that - but it would be really cool...) As others have noted, there is valuable real estate being take up but closets / bathrooms - esp if there is a decent view out the back. You'll have to be VERY specific on the excavation and foundation to get no steps from the garage into the house. Houses tend to get "built up" instead of being excavated down if you are using a crawl space. The garage usually gets plopped at ground level since it's a slab. And then you simply get the number of stairs to bridge the 2. Lastly - do the upstairs stairs encroach into the hall? That would drive me nuts.

Hi everyone!! Not sure how many of you are still following this post that commented, but wanted to let you all know that I have officially paid off all of my student loan debt!!! Woo-hoo!!! I took advantage of the 0% interest and became really aggressive with getting down the balance. I’m in limbo with buying a home because of this terrible market for buyers, so I’ve decided to continue to hold off until the market starts to settle and just continue to put money in savings. Also, I’ve been in Atlanta for more than 10years and I’m not sure if this is where I want to purchase a home. I’m going to take some time to sort that out. My dream has always been to experience living some where in Southern California but sigh — cost of living. Anyways, just wanted to let you all know I crossed that major milestone!!!