You did it. You went through the 5 rings of hell to find your land, get a building permit and finally close on your construction loan. Now you can break ground, build your house and live happily ever after! Not so fast!
Welcome to the highs and lows of building. One moment you are on cloud 9 and the next you are plummeting off cloud 9 heading for earth at warp speed.
The jokes on you, this loan that you just got, that you just put an ungodly amount of money down to get, that you are now expected to start paying for monthly. Well you can't touch any of that loan money until work is completed or materials are onsite. Surprise your loan is a reimbursement account. You better pray you have a rich uncle, a winning lottery ticket or a hell of a lot of coins in your couch cushions. This is where the rubber meets the road. Where you show your true grit to get it done!
This is the bank's best kept secret. The bank wants to mitigate as much risk as they can so they make the borrower pay upfront and they make the builder pay upfront in the absence of a structure. Since our builder (my dad) wasn't building our home for a profit. We were on the hook to come up with the capital to get the project going and to keep it going!
This all occurred the week I went back to work full time with an 11 week old baby right before the holidays! Merry Christmas! Dear Santa all I want for Christmas is a giant blank check!
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