So, to update my question from yesterday. Thanks for all the comments. I just wanted to make sure I wasn't stupid (and crazy)! The bank really ticked me off yesterday. I'm basically dealing with two bankers, one does the construction loan and one does the end loan. They tried to tell me that they had only qualified me for $453,000 with me selling my house. I said no, that's not what you told me. You told me I qualified for that in addition to keeping my existing mortgage. I then forwarded them emails where he told me this and I then had emailed back and asked - ok, so to clarify, once I get this house sold and out of this mortgage, I would then qualify for more? and he replied yes, but understand that part would have to be a second mortgage (because $453,000 is the max conforming loan limit in our area).
Then they both tried to tell me they didn't know I was building a house too! OMG! I'm like what are you talking about? Banker guy says "I was just told you were building a shop with living quarters". Banker lady tells me "I thought you were just building a "shouse". I'm like what the heck is a "shouse"? It's a shop with living quarters. I said I have no idea what you are talking about. Our shop plans have a small bathroom, that's all it's ever had and plans have never changed. Then I said why in the world would I have included the house foundation in with this shop construction loan if I wasn't building a house???!! Then she tried to tell me "well you weren't approved for that amount unless you sold your house first, because of your debts". I'm like WHAT debts?! The only debt we have is this house mortgage. Period.
The banker guy then emailed me back that I was correct, they did approve me for the $453,000 with my existing mortgage loan. The whole conversations with them was so annoying. Our builder was flabbergasted. He was like "they have the shop plans. It doesn't have living quarters in it....plus they approved including the house foundation being done with this shop construction loan!".
It's resolved now, but I was just freaking out for a bit that I must be totally stupid on not understood what they told me back in January!