| If you intend to construct a log home, you have to | | | | conservative lenders will finance you only when the |
| approach it in a systematic manner and follow it up | | | | materials are on the site. But this can be a problem |
| with meticulous planning. Finance is the main | | | | because log home companies generally demand |
| consideration in your log home project. You have to | | | | payment before the logs are dispatched to the site. |
| ensure that you are adequately covered from the | | | | However, a log lender will be more co-operative and |
| start of your project until completion. Too many log | | | | will understand the process of building a log home. |
| homes have gotten stuck at the end of construction | | | | Initially you will have to apply for a construction loan |
| because the money ran out. Therefore, it is advisable | | | | since you are effectively building a home. But once it |
| to begin preparing for it well in advance and provide | | | | is complete you can convert it into a mortgage loan |
| for emergencies that may arise during the course of | | | | spread over a 30 year period or whatever is most |
| completion. | | | | feasible for you. Do not make a spot decision but |
| Ascertain your Financial Condition | | | | rather consult with many lenders to get the most |
| The first thing you need to do is take stock of your | | | | attractive repayment terms. |
| financial resources. You need to have sufficient funds | | | | Initial Groundwork |
| at your disposal before you get your project | | | | Before you apply for a loan it is prudent to get |
| underway. Experts advise that you need to earmark | | | | pre-qualified. This involves having a discussion with |
| funds of at least 40% of the total budget in cash to | | | | lenders about your income to debt ratio. You will |
| guarantee that your log home gets completed | | | | probably have to supply documentation like proof of |
| without a snag. If you run into a crisis, it can seriously | | | | income, recent tax returns, and retirement savings |
| hamper the progress of your project if you do not | | | | accounts. Figure out how much you are eligible to |
| have adequate finance to get you through the rough | | | | borrow and the kind of terms you can expect. Also, |
| patches. Moreover, the more your project is delayed, | | | | get your credit score from the three credit bureaus: |
| the more it will cost you. So before you apply for | | | | Experian, Equifax and Transunion. The higher your |
| finance to banks and private lenders, make sure your | | | | credit score, the lower the mortgage interest rate |
| own finances are in good shape. | | | | you will be charged. |
| Applying for Finance | | | | Eliminate Wasteful Expenditure |
| It is better to be safe than sorry. Following this | | | | With a little bit of vision and foresight you can get |
| principle, it would be better to apply for the | | | | your budget in control by saving on fittings, fixtures, |
| maximum amount of finance through a construction | | | | floor panels, doors, windows etc. Use imitation |
| loan as is possible. However, every project must | | | | materials instead of the authentic ones. Try to keep |
| have its boundaries. This is because expenses have a | | | | the floorspace to less than 1500 square feet. Select a |
| way of spinning out of control if they aren't checked. | | | | floor plan that is easy to construct, with the |
| Rather than being conservative and approaching only | | | | bathroom over the kitchen for reduced plumbing |
| banks for a loan, you would do well to explore other | | | | costs. If you exert discretion in selecting material and |
| sources of finance. Consider contacting log lenders | | | | positioning your home, you can eliminate wasteful |
| for finance. They tend to be less restrictive than | | | | expenditure and make sure you do not exceed your |
| banks when it comes to financing. Most of the | | | | budget. |