Monday, January 19, 2009

Log Home Mortgage - Difficulties You'll Need to Overcome

So, you've finally found the log home of your dreams. Now you have to figure out a way to finance it and finding log home lenders is not necessarily such a simple task. When you are looking for a log home mortgage, you'll find that there are many lenders that are just not interested in providing you with the money to build or purchase a log home. There are quite a few difficulties that you are going to have to overcome if you are going to get the log home you've been dreaming of. Although there are many lenders who won't want to give you the mortgage that you need, there are a few great mortgage brokers who are willing to lend you the money that you'll need with competitive interest rates as well. Let's take a look at some of the problems you may encounter when trying to finance your log home and the steps to getting a log home mortgage.

Problems with Financing a Log Home
First of all, you'll find that there are many problems with trying to finance a log home and a variety of reasons that lenders just don't want to lend money on a log home mortgage. Here are just a few of the problems that you are going to encounter if you are trying to find a mortgage for your own log home today.

- Today's Mortgage Crisis - First of all, you'll find that today's mortgage crisis definitely has an impact on trying to get a log home mortgage. Many lenders are already hurting or going under financially, making it difficult for anyone to get a home loan, much less a loan on a "non-standard" structure like a log home. It's a difficult time to find financing and this gets even harder when you are trying to finance a home that already has difficulties when trying to find a good mortgage option.

- Difficult to Find Comparable Sales - Another problem you may have when trying to find log home lenders is that it is difficult to find comparable sales for a log home. Many times it's hard to find log homes in a specific area to compare your home to, which means that lenders are not really sure how much your home would be worth, so they decide not to lend to you. It's a bit easier to get a loan in areas where comparable sales can be found, so keep this in mind when you are deciding where to purchase a log cabin today.

- It's Considered a Non-Standard Structure - A log cabin is considered to be a "non-standard" structure, which makes it even more difficult to be able to get the mortgage that you need to purchase or build your log home. Most lenders don't want to step out on a limb to finance this type of a structure.

- High Down Payments - Even if you can find the mortgage that you are looking for, many times you'll end up with high payments, which makes it difficult to afford the log home that you really want. Often you'll need to come up with 10% to 25% of the cost of the home and land, and in some cases, you may be asked to come up with 30% of the purchase price.

Steps to Financing Your Log Home
If you are trying to finance a log home, there are a variety of steps you'll have to go through in order to get the mortgage that you need for the log home. Here are the steps you'll need to keep in mind.

- Mortgage Pre Qualification - First of all, you'll need to go through pre qualification. Getting a mortgage pre qualification is going to allow you to figure out how much money you'll be able to get so you can get an idea of how much you'll be able to have to purchase the log home that you want.

- Mortgage Application - After you find the log home that you really want, then you'll want to go through the mortgage application process. You'll need to show your income amount, financial documents, pay stubs, and more. You'll also have to pay for the appraisal and an application fee.

- Approval and Settlement - Next you'll end up getting the approval for your loan. After you are approved for your log home mortgage, you'll need to give the lender a copy of the deed, the plans if you're building a home, and a construction contract.

Finding a log home mortgage can definitely be a bit difficult since the homes are large and there are few comparable sales. However, if you really need to get a mortgage, one of the best ways to get the mortgage that you need is to go with a good mortgage broker. If you're buying a log home in Minnesota, try going with a Minnesota mortgage broker to get the mortgage that you need. More than likely they'll be able to help you to find the log home lenders that you've been looking for.

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