FINANCING A LOG HOME

Financing for a new Log Home can be a little tricky in some areas so you need to check with your favorite?? lending institution. That may very well fail so don't get too discouraged right out of the chute. Fortunately there are lenders that specialize in financing Log Homes most anywhere in the USA and I am sure there are those in Canada also.

Enter the lender's office with so much information that the lending officer will be so overwhelmed with your preparation that he/she will ask, "How much do you need?" Well, I'll admit that may not happen but do be prepared to the hilt.

You will need two copies of your plans and information regarding your property. That means if you own the lot or want them to finance that also which may be a strike against you but not always. Have all information about the lot. A drawing of the lot by a surveyor is great and have him locate any sewer, water, gas, existing roadways and easements as well as the location of iron stakes marking the boundaries of the property. Obtain the price range of homes in the vicinity if that is pertinent. This is not the prices folks think they should get for their property but what they paid for it. Seperate the lot cost from the home.

At this point in time you should have your plans in hand and a list of specifications for everything in the home. This is a little time consuming I know but the time you spend now will be returned many times over later.

Don't go into the lending institution with a chip on your shoulder. You need them, they may not need you at all. Be congenial and don't get flustered by questions about things you consider private. Don't chatter!! Offer information when asked and be concise, know exactly what you are doing concerning your potential home. Practice your information in front of a mirror if you need to but do know what you are talking about or you are in the soup from the beginning. A person or persons that speak intelligently have a ninety percent chance of getting the loan if you are qualified. I say qualified because I don't want you going in there and ask for $100,000 when you simply cannot afford the payments on that amount. You will need a down payment I can assure you of that. The more you can afford to "pay down" the better but don't dump all your cash into the loan company, you will most likely need some for unexpected items and changes.

I must caution you that when building a Log Home paying for the package or whatever the circumstances of your home, you will need about forty percent of the total order up front. Yes, that means the Log company will not start your home package until they have a percentage of the total. When the material is delivered to your property the driver will most likely have a bill for the remainder and you will not unload until he has the money in his grubby little hands. This is done differently with some companies but it is relatively the same. I tell you this because lenders that are content with loaning for conventional homes may not approve of this and you are stuck.

REMEMBER!!! GET ALL YOUR DUCKS IN A ROW!!!