We might make the front a living room and situate the third bedroom just behind it. Is that preferred over the front becoming a bedroom?

label the rooms on your plan. where is the front door?

Here it is!
K= kitchen
D= Dining area
L= Living room
MBr= Master bedroom
2Br= Second bedroom
Ga= 2 car garage
Patio & back Porch

The front door is from the Patio into the living room area.

Not a pro…

I like what Susan L drew (it doesn't disrupt the rest of the house), but you need a closet for the new bedroom. If you start moving around other rooms the cost of this project will increase dramatically. I don't know how big you were hoping to make this room, but you certainly still need a front entry.

Even though this seems like a small project, you should really get an architect to do the drawings for the contractor. Contractors build what you tell them to build and very few of them have the artistic abilities to make attractive additions. You are changing the front elevation of your house. Do it right and everyone in your neighborhood will want to imitate it. Do it wrong and you will spend the same amount of money but regret it.

Kandrewspa - I like that thought you provide at the end of “imitate vs regret $” and Susan - thanks for the sketch.
Going to be working with an architect, yes!