Step #2 in Planning for Success - Establishing a Realistic Budget

DSCF0277a-lowres.jpgPlanning is the KEY to a successful log home building project. Last time we reviewed the first of ten important steps when planning your dream log home - RESEARCH.

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 “pre-qualified” means that the dollar amount determined by the lending institution is their best guess loan amount 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.

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Donald Parsons
Written by: Donald Parsons
My wife and I built our log home in 1992 and I began working for Appalachian in 1993 and have been assisting clients realize their dream log homes ever since. Before coming to Appalachian I worked for the airlines and for a Tour Wholesaler which, took me to Japan, China and Southeast Asia. Thus began my other passion which is travel. We've been to all 7 continents and enjoy learning about different cultures and discovering local cuisines. Our most recent adventure was a cruise to Antarctica where we had the opportunity to tent overnight on the peninsula.

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