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If you use a construction loan to build your own home, be sure you understand how it works before you start building. The bank will send an inspector to make sure the work is proceeding on schedule before it cuts a check.

While the bank that's handling the end loan has no problem changing the total of the end loan to reflect the actual construction cost of the house—fortunately the original construction price wasn't at the upper limit of what we could afford—the construction loan, which is based on the quotes you have from before the price increase that happened as you were building the house, IS FIXED. There are check points that you have to reach. When you reach those points you're handed a check, not for the amount that you've actually had to expend, but for the amount set down in the draw schedule.

Know what I'm sayin' here?

I do understand the reasoning behind this. It keeps unscrupulous individuals from running out and buying a new Mercedes with funds that are meant to be spent on building a house. But, when a home owner/builder can provide you with documentation detailing exactly what has taken place and why. And when the whole world knows that one sheet of plywood has doubled in price. And it's perfectly clear this cat isn't walking around showing off his **boucoup bling**, isn't there some way to cut him some slack and give him some of the cash he needs to proceed with finishing the house? (I mean honestly, isn't this really the goal here?)

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