Step #2 – Prequalify and Establish your Budget. Even if you are in a cash equity situation and do not have to have a lending institution involved in your building project it is recommended that you set a budget for the project. Be realistic when setting your budget and like any goal you set for yourself – write it down.
If you decide to use a lending institution, start the prequalification process early. Keep in mind that “prequalified” means that the dollar amount determined by the lending institution is their best guess loan amout based on un-verified information that you have provided to them (income, debt, liabilities, etc). Once you choose a lender and submit a loan application fee along with all of the other documentation required (Taxes, pay stubs, bank accounts, portfolios, floor plan, cost estimates, etc) they can determine an exact loan amount.
Once you have been prequalified and have set a realistic budget it will be easier to start investigating the size of log home or log home kit you can build for the amount determined. We suggest not getting your heart set on a floor plan before being prequalified and setting a budget. Knowing how much you can borrow will help you budget accordingly and to properly size your log home floor plan.
Your local Log Home Building Consultants have assisted thousands of homeowners through this process so when you have questions, contact one of them.
Next time – Step #3 – Selecting Your building site. Follow this blog series on our web page http://www.applog.com/blog-0/
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