So I am getting ready to build this 1450 sf house call it House B. It’s a spec job, I’ve already closed on my loan, based on a set of plans, my lot, and an appraisal of 100k. I clear my lot and finally get a good look at the spacing based on the plan dimensions and the actual lay of the land, and it’s not what I expected. I am within the parameters for boundary line to outside wall distance as set by my city, but I just don’t like how close the house will end up being to the adjacent ones.
Now I am currently finishing up another house (House A) across town that has a smaller footprint especially in terms of width and would fit much better on the new lot I want to build on. House-A is approximately the same square footage as House-B and it appraises for the same amount, 100k. Technically I cant just build House-A on the new lot without notifying the bank and qualifying the loan based on the House-A plan, but what happens or what can happen if I do it anyway? I don’t think the banks’ inspector will pay much attention. I think when I call them for a draw because the foundation has been put in, he’ll just come by and verify that a foundation is in fact on that lot as it should be and cut my check, and so forth until the job is done.
I’m in a small town down south, and they aren’t too strict on every minor detail. I doubt the guy from the bank will anyone to measure the slab. And as long as my final appraisal numbers line up, I’m good right? Ok, now you guys tell me if I can do this, if I should, or if you have known it to happen. Right now I plan to stick to the original plan because I know I can’t get into trouble for that. I just have to bite the bullet on the outcome of the final project and how close it is to the neighbors. But I would love it if I could make a change without the redtape and time of re-qualifying my loan.
Replies
That is exactly what I would do. After all, what could possibly happen? I mean, what could they do mid stream. They don't want the lot back with a half built house on it. And besides, that is why we are all independent business people. So we can take risks and call our own shots. Sure, they might be a little difficult to deal with later, or may shut the job down for awhile. But hey, you would be in charge and make your own call based on your own rules. Good business. Yeah, thats it, I would do it.
Really, would you take that kind of advice over the internet? I don't build houses nor deal with banks on anything other than a line of credit. My advice for something like this is worthless. But I can tell you relationships with your financer are gold if you have a good one. Don't screw it up. DanT
I think build what fits the lot best. As you said the bank will not come out with a tape measure but the tax assessors will.
Chuck S
Hmmmm. Autonomy....lovely concept but trying to apply it when you're really a partner in a business deal with the bank...I'm not so sure that it fits.
My immediate inclination would be to do exactly what you're proposing but experince tells me that you'd be much better off if you had a chat with your loan officer and told him/her exactly what you've told us. If that puts you out of work for a couple of weeks, look upon it as a sign that you've earned a vacation...and take one.
Talking with the loan officer, not a bad idea, but if he tells me I need clearance and to re-qualify or re-process the loan, I definitely can't do that. And then I would really be taking a risk if I made the change on my own because I tipped my hand in advance. Maybe talk to a loan officer from another bank to find out their procedure.
On the other hand..
I seriously doubt anyone sent by the bank is going to measure anything. The inspector probably won't even have any info other than the basics of location and customer info. Even though I did forget to tell you guys that the original plan is a 1 story, the change would be to a 2 story, but like I said, square footage and appraisals are nearly the same.
So now to clarify where everyone stands, give me your vote first then comments.
Choices
A. Bite the bullet, build the original plan on the lot.
B. Change the plan, don't involve the bank, they won't care as long as the numbers work.
C. Ask the bank, if they don't clear it without the red tape, don't do it.
Thanks for weighing in guys.
C.
No brainer.
CSamT
Praise the Corporation, for the Corporations' highest concern is the well being of the public.
C
you said you were in a small town, so if you screw up this relationship with the bank how many other options do you have????
No brainer, C. If you can't talk to your banker about business, you need a new banker.
The worse case is that if SOMETHING HAPPENED and the project goes tits up and it comes out that you build something different than what was planned then you could potentially get charged with fraud..
.
A-holes. Hey every group has to have one. And I have been elected to be the one. I should make that my tagline.
Plan C. Sell them on the fact that the new plan is a better fit."Put your creed in your deed." Emerson
"When asked if you can do something, tell'em "Why certainly I can", then get busy and find a way to do it." T. Roosevelt
Hey guys, thanks for all of your responses. Everyone basically seemed to agree that the best thing to do is talk with the bank and get clearance to make the change, otherwise stick to the original plan, which is what I had planned to do. I just thought I would bounce my wishful thinking off of others to see if something else might come up, but everyone here gave me the same advice, which was good. I guess great minds think alike! Thanks for all of your help.
SamT
Praise the Corporation, for the Corporations' highest concern is the well being of the public.
You'll be happier. And can hold your head up in town. That counts for a lot
Good luck
character is what happens when no one is looking
talk to the bank