1. Appraisal.  Most banks are so used to traditional homes.  They only accepts appraisals that have 3 or 4 comparable homes, within a half mile radius, that have sold within the past 6 months.  In most cases, Log Home comparables will not be available in the immediate area, thus causing your local bank to reject your loan.

2. Draws.  Most banks want to see material on site before they pay for it.  With your log or timber frame home, you will spend about 50% of the package price before the logs are on site.  Log home lenders understand this process and will help pay your log suppliers deposit requirements.

When should I start the loan process?
Before you start designing your log home.  Some clients have come to us after designing their dream home.  Only to find out they can not afford to build the home they designed.  So they end up paying more to have the home redesigned.  You will benefit from off getting pre-approved, to determine how much home you want to invest in and where you are comfortable in a monthly payment.  Getting pre-approved also lets log suppliers know how serious you are about buying a log home and will give you the serious attention you deserve. 

What needs to be in place to get a loan closed?
There are several items needed to close your log home loan.  
1. The basic loan application, disclosure forms, and supporting documents (pay stubs, bank statements, etc) that any loan requires.  
2. You will need to have the land.  Whether is its owned outright, has an existing loan, or under contract, the land is an essential part of the plan.  Any equity in the land can be used toward the project.  If you have an existing land loan, the construction loan will pay off the land loan.  
3. Plans will have to be completed, engineered, and permits applied for. 
4. Septic approval

In addition to needed cash in reserves, these item may need to be paid before your loan is able to close.

What other out of pocket expenses can we expect?
The other item you may want to pay for up front is your log deposits.  Typically, suppliers will require a deposit just to get on the crafting list.  Then, another deposit to start the crafting.  Although you could wait until your loan closes to supply these deposits, you may be 4 months into your construction loan before you see logs on site.  This would cause you to take a longer term construction loan with a higher interest rate.  Again, talk with us about ways to get these items paid for before your loan closes.

Can I get any of the cash I have already invested back?
Yes.  Every item needed to build your dream home, from plans to site work, to logs, to finishes, will be accounted for in the loan process.  After the loan is closed, you may indicate that the well, which you paid cash for, is now complete.  So on a draw request you would include that dollar amount.  The bank would then pay that money out to you in the draw.