Building your dream house involves several steps, including finding the ideal plot of land, selecting a log home designer and builder, and creating a floor plan. Another important step is finding a reliable lender that can help you get the funding you need. Here are five things you should inquire about from potential lenders before choosing one to pay for the new log cabin.

  1. How Soon Will The Lender Begin To Pay The Cost Of The Log Materials Package?

During delivery to the construction site, several log home builders asked for full payment for all the supplies packages. Many financial institutions, though, won’t shell out cash unless the components are firmly fastened to a basement floor. Finding a lender willing to make payment for the log package in advance of its delivery to your construction site is a good idea if you don’t have the cash on hand to cover the cost of the materials package.

  1. When Should I Lock In My Mortgage Rate If It’s Coming To An End?

A mortgage’s annual percentage rate (APR) at the loan’s maturity is the rate at which principal and interest payments are calculated. You may be able to lock in your final interest rate with certain log home mortgage lenders even before construction is finished on your new home. Typical durations for such locks are between three months and a year.

  1. How Long Does The Financing Cover The Construction Process?

You must find out from your builder/contractor the duration it may require to finish construction on your new house. Then, ensure that the repayment period offered by your lender gives your contractor a reasonable length of time to complete the building. Construction terms might differ from one lender to the next. The length of these periods might be anything from six to twenty-four months.

  1. Is There A Builder-Approval Procedure That The Lender Utilizes?

Some lenders have requirements that your builder meet before they would approve your financing. Before beginning construction on your house, the lender may need your builder to present company financials. While few builders do not face issues with this, others may be reluctant to provide the lender with such detailed information. Finding a lender who does not need builder approval might be beneficial if your builder is unable to provide this information.

  1. Can You Offer Me References From Previous Clients Who Have Used Your Services?

It’s important to choose a lender that can give the kind of service needed to see the construction of your dream house through to a successful conclusion with as few bumps in the road as possible. If a lender routinely goes above and above for its borrowers, they must have no problem supplying references from satisfied borrowers.


You may have finally found the house that you have spent the last many years fantasizing about. Working along with log home mortgage lenders who can fulfill all of your requirements can make the procedure of constructing your new house as simple and uncomplicated as it can be.