How To Determine Your Budget

by | Jul 9, 2021 | Financing, How-To, Planning

Establishing a realistic budget may well be the most critical element in the successful financing of a log home construction project. Determining the overall cost of construction and any necessary financing simplifies the entire experience. A cost estimate and detailed budget include the anticipated expenses for major items such as the logs themselves right down to the types of light fixtures that are to be installed and the nails that hold the structure together.

“Work on collecting data,” urges Andy West, vice president and wealth management adviser with the West & Gasparini Group. “This includes everything that will be used as the house is built, including such things as flooring and faucets, appraisal and permitting costs. You need to have cash available for contingencies so that you don’t have to borrow every last nickel of the cost of construction, particularly when something unexpected comes up.”

The preapproval process assists in establishing a realistic budget, says Troy Kennedy of Wells Fargo Home Mortgage. Determining the amount a client is willing to spend on construction allows the mortgage lender to determine a loan program that fits the monthly payment, down payment, and construction funding goals.
To aid in determining a budget, shop around. Compare quality and prices. It is okay to dream; however, the reality check is inevitable for most people. Consulting with a qualified contractor brings a wealth of experience to the budgeting process and sets realistic expectations for all parties.