I have question about building and financing a home. I own property in Kentucky valued at around $40,000 and it's completely paid off. I was wanting to build a home on it in the range of $180,000 - $200,000. I planned on putting down an additional $20,000 - $30,000 down, which would mean that I would be financing between $150,000 - $180,000. I think that the total value of the house and property would be between $220,000 and $240,000. Currently, I owe about $300 on credit cards and $15,000 on student loans. I planned on paying both off before I financed the home.
My credit score from myfico.com is about 750 (ave. of the 3). The only credit blemishes I have are that, unknowningly, I was a month behind on my payment for the land (when I owed on it) and I was late on a credit card payment. While I was out of town, my wife paid the land payment later one month and thought that she was paying it on time; however, she was late enough that it was applied to the next month's payment. Therefore, we were one month behind for four straight months and didn't know it. I finally discovered it one month while paying some bills. I immediately contacted the bank and set my payments on electronic debit and paid the loan off within a few months. This all happened last year, but my credit is still good enough to have a high score. The thing is that this happened at my local bank and I want to go to them again or someone nearby for a construction loan and mortgage.
With the credit crisis now, I'm worried about what the bank will say. Does anyone think this will be a big deal?
