The way we used to bob rear fenders was to cut the front and then roll the fender forward. Much easier to make it look nice when the cut edge is out of sight.
As for lowering, you can drop the bike about 2 inches with minimal effect on the handling if you use the aftermarket shocks and front springs that are available from Progressive and a couple of other sources. If you lower the rear only, it increases the effective rake angle in the steering. This makes the bike a little less stable at very slow speeds and more stable at higher speeds. So, if you really like the look, be prepared to wobble a little when nearly stopped and work a little harder to go around turns.
