Day 50

Another appraisal. Another value. In another post, I told you about the very low appraisal we got a few weeks ago. Well, we decided to bail on the bank that we were using, and that was dropping the ball in more ways than one. I ran into person after person there that would just not return my calls, or didn’t seem to be in a hurry to do anything. Even after resubmitting information to the appraiser we had through that bank, he would not change his valuation of the property and house.

My realtor mentioned that they had a client that recently had a deal done with another bank that went very smoothly. I found out who did it and decided to give them a call. By the end of the day, I had applied online and the mortgage person had printed off my application by that night. A morning or so later, she had already gotten an appraisal ordered. The appraiser called me by 10:00 that next morning.

So, we sat on pins and needles for the next half a day. I was expecting a few day process, because of how things had gone at the other bank. Not the case here. We knew the next morning that we got the value we needed!

We were going to be able to build and have the equity necessary to prevent carrying PMI (Private Mortgage Insurance). On a house the size of ours, PMI could be as much as $250/mo. I really did not want to have that kind of a fee added to our house note if possible. And with this latest appraisal, it looks like we won’t have to have PMI.

So, I am glad I switched over and went with this other financial institution. The only bad things about this part of the process: we wasted about 5 weeks of time with this other institution, and we now had to pay for the first appraisal. A sum of $425!

Overall, I am very happy with how the appraisal came out. Now, on to the next step.

Until next time…

Day 31

Gut feeling. You know when you get that gut feeling about something? For me, it happens at times that I don’t really like what I’m getting a gut feeling about. Meaning, I would really like to have a better feeling about something than I do, but I don’t.

I’m referring to the latest tract of land that we were looking to buy. I met the builder and his dirt work guy out there to get an estimate of what the dirt work and tree clearing costs would be.

I am in shock. Ok, not really…but only because of that whole gut feeling. If I did not have the gut feeling that this land was not right, it would come as a shock. After walking the land twice in the last few days, I just don’t have that rose colored view about it. I am not as enamored with the land as I once was.

Last week, when my dad and I walked the land, we saw something interesting on the back part of the land. The leaves were compressed and had some funny markings. Come to find out, that is due to them being under water at some point. I really think the back half of that land is just wet or outright under water some times of the year, and I don’t think I am ok with that.

At least $30,000. That was the quote from the builder and his contractor. And they don’t have anything to gain from lying to me about the cost of the dirt work on some land. That does not get them any extra money when I use them. They went through the steps of what it would take to raise that land up to the level that it needed to be. It would just cost too much. I originally said today that if we could get the land for $20,000, I would buy it and proceed. However, my gut is telling me differently now. I now remember seeing those funny markings on the leaves from them being underwater. Also, my dad did not have much to say about the land at the time. Turns out, he was reserving judgement until I could get word from someone else that it would work.

I just think this land needs too much work to be able to get the equity out of it that we need. Also, with the water and drainage issues, I’m not sure it will ever be valued at the amount that I’m picturing. However much we liked the neighbors, I think we will have to pass on this one.

Do you ever have these gut feelings? Are they usually things that you want to do, but your gut tells you not to and you know it is right?