Does this sound realistic? I have never made an addition to any house I have owned in the past and recently (two years ago) decided to purchase a smaller home (1100 square feet) that would also be easier to maintain. The only thing I don't like about the house is that, while it has a garage attached (with only the roof), I would like it closed in. So, essentially, it needs two walls and then the front wall (garage door). I received several estimates with the highest being around $7000. The lowest was $5000. I have decided on a single garage door rather than two because I recently purchased an Avalanche and haven't figured out how to park it straight yet. I'd like to jump on the project but can't really afford much more than $5000. Also, I know I'm going to want the exterior matched to the house as closely as possible. So I'm somewhat concerned that I would get in the middle of the project and then need a LOAD or more money.
My main question, other than whether or not this seems like an accurate price, is regarding construction loans.
1.) Will the construction loan be issued with an estimate of the value of the home AFTER the garage is closed in? (I have no equity in the home).
2.) If I apply for a $5000 loan but then need more money, is it possible to have the loan "extended" to a greater amount in order to complete the project -- my nightmare would be to have it stuck in the middle without completion.
3.) Does the construction loan roll into another mortgage upon completion of the project or does it stand as a separate payment?
And, finally, sorry for all of these questions. This site has been my source of information for most everything over the past few years.
My main question, other than whether or not this seems like an accurate price, is regarding construction loans.
1.) Will the construction loan be issued with an estimate of the value of the home AFTER the garage is closed in? (I have no equity in the home).
2.) If I apply for a $5000 loan but then need more money, is it possible to have the loan "extended" to a greater amount in order to complete the project -- my nightmare would be to have it stuck in the middle without completion.
3.) Does the construction loan roll into another mortgage upon completion of the project or does it stand as a separate payment?
And, finally, sorry for all of these questions. This site has been my source of information for most everything over the past few years.
