While the real estate market slowly improves, you may be questioning whether it’s possible to finance your timber frame home. Don’t worry. Although financing a home has changed over the course of the last few years, there are lenders out there who are ready to lend money for your future timber frame home.
Due to market movement in the last few years, lenders have developed greater caution when lending. For example, where credit applications and document requirements were more relaxed in the past, lenders now require all documentation and applications be thorough and verified. Along with this, knowing the comparables of your projected build site will help determine your property’s value.
Assessing the property value of a home is one of the bigger challenges lenders now face when approving loan applications. With the number of foreclosures and short sales throughout both Canada and the United States, determining whether your timber home’s property is marketable in the event of a foreclosure is now more difficult. Another factor? Determining if the home fits the market in its neighboring areas becomes more complicated. Both factors are indicators of how much your home and land will be worth.
When you are ready and before speaking with a lender, you should know about your property and project designs as well as the answers to the following questions:
By preparing your property specifics and documentation before speaking with a lender, your financing application will go more smoothly and will ultimately save you time in your project process.
All information for this article was provided by Paula Murtha, a mortgage loan officer at US Bank with years of specialized experience in log and timber home framing.
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