Financing your New Home
While most people initially concentrate on choosing a log or timber frame manufacturer they very often put to the back of their minds the next most important step – How to fund their dream home. Most of us have a budget irrespective of size and therefore it is important right from the start to work with your log home dealer to establish an initial budget to build that home. Delays in choosing the right mortgage lender can cause the project to take much longer and in the end will drive up costs.
Here are some useful tips to guide you along the way.
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- Shop for a loan before committing to a log home package – At least get pre-qualified.
- Choose a combination loan – Basically you need two types of financing – a short term construction loan and a permanent mortgage. By choosing a lender who will merge both and therefore you only have one closing cost, saving you money!
- Check the terms of the construction loan – Typically financial institutes will allow a 12 month loan and others will go to 18 months.
- Will the lender allow ‘home owner builds’? If so there may be additional charges and/or time frames.
- Most important – Once you are pre-qualified and have ordered your home package DON’T just sit on the fence awaiting the next call. Follow through with the lender and establish what paperwork they need next to keep the ball rolling. Delays will cost you money.