Financing your log home is one of the most important parts of your research. While most people initially concentrate on choosing a log or timber frame manufacturer, the next most important step is how to fund their dream home.
What’s Your Budget?
Most of us have a budget irrespective of size. 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.
Tips on Financing Your Log Home
Here are some useful tips to guide you on financing your log home.
- 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, you only have one closing cost, saving you money!
- Check the terms of the construction loan. Typically financial institutions 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 importantly — 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.
Have more questions? Contact us. We’re happy to help you find the answers.
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Footprint Log Homes works closely with our customers to help them build the custom log home of their dreams.