Not knowing how your home is constructed or if your foundation is concrete or CMU (cinder-blocks) you'll likely have two issues with foundation settlement, 1.

If you go buy a new car the day before settlement, the lender is going to be upset.

I would also look for other settlement evidence, around the base of the house, gauge plumb in the outside walls, that kind of thing.What you've presented, in conjunction with the fact that we don't know where it is so local people with local specialized knowledge won't be able to chime in, makes it unlikely that you're going to get a quality answer.

The settlement agent is handling two transactions, the first is your refi the second involves an inter family conveyance. 

Here is a breakdown of the closing costs: - 0.25% of loan amount (points): $638- Origination Fee: $895- Appraisal Fee: $575- Credit Report: $66- Flood Certification: $7- Inspection fees: $125 (only applies if appraiser requests fixes)- Title - Settlement Fee: $495- Title - Courier/Overnight Fee: $75- Title - Endorsement: $150- Title - Lender's Title Insurance: $1252- Title - Mortgage Payoff: $75- Title - Searches: $265- Title - Wire Fee: $75- Recording Fees and other Taxes: $320- Transfer Taxes: $2553- Homeowners Insurance Premium (12 months): $780- Homeowners Insurance (2 months reserves): $130- Property Taxes (8 months): $6120- Personal Rep Fee/Borrower's Attorney Fee: $650- Title - Owner's Title Insurance: $685 (optional but I will get it to be safe)- Daily Interest 11 days: $221.19

@Mick Hofmann I have purchased an apartment building locally here in Berwyn before where the commission was changed to a credit on the settlement statement.  

It could also be done as Ann mentioned as a seller financed deal, but the owner will need to provide the subordination agreement with clear title.At settlement, the lot sale is filed first from the owner to the contractor and then title from the contractor to the homebuyer providing a good chain of title and the bank lien is cleared.A subordination can also be made to the contractor if no funding is needed and that serves as collateral for the build.

You can write your contract so the that all adjustments are as of the date of contract not the date of settlement.

An actual cash value policy simply takes the replacement cost and deducts the depreciation to come up with your settlement.

Realize that initial settlement is made with depreciation levied.