Here is how the money works, for you unlucky few who have not had to go through this yourselves:
We got a construction loan. They have agreed to loan us a percentage of the estimated value of the completed house. It took FOREVER, but that loan is all squared away and secure. The loan basically acts like an account that we can draw money from. The first thing they did with the money is pay off our existing mortgage. And now when we need money, to buy lumber for instance, or pay the excavator or pay for the building permit (but NOT to buy furniture unfortunately), the builder fills out a form with all of the separate, specific things that need to be paid for, Richard or I signs it, he takes it to the bank and they write him some checks. And I guess that part takes a couple of days. And we keep doing this until the total they are willing to loan us is all used up. If all goes as planned, the house will also be done at that point, and the Construction Loan magically transforms into a mortgage and we're done.
Intriguing? No? You came here by mistake?
Well, we can't read without pictures, so here is a picture of the front of our house. This should give you a feel for the beauty that our neighbors get to experience. Enjoy!
