Log homes provide a rustic feeling living environment.
The most important part of financing a log home is the appraisal. Before a loan is approved, the mortgage lender will want to know about the real value of the house based on different factors. Ideally, a third party is involved in the appraisal process, but the homebuyer can also do it on his own for personal satisfaction.
Instructions
1. Measure the size of each room and the size of the log house and make notes of any repair or remodeling that is required if you are purchasing a log home. You should also get a copy of the log kit quote from the owner. If you plan to construct a log home, then meet a contractor and have the detailed construction plan ready.
2. Search for similar log homes in the neighborhood that have been recently sold or constructed and note the details of the log home and the asking price. Many people auction their homes,and you can get in touch with an auction company to learn the details of log or custom homes being sold in the area. The mortgage underwriting will require comparable prices of at least three resales from the last 12 months.
3. Estimate the repair costs or cost of constructing the log house. Include all the indoor and outdoor repairs you wish to make. Get quotes from at least three contractors for the total cost.
4. Check the value of the land on which the log home is built or will be built. Usually mortgage lenders allow a maximum of five acres for appraisal. Go over the deed if the land is owned.
5. Combine the construction/repair costs, the value of the building and land value that will give you the home appraisal total.
Tags: home appraisal, least three, repair costs
