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(Establishes
the value of the future home on the
borrower's building site. The lender
determines the loan amount from this
figure)
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Approved Appraisers - American
Log Mortgage has a list of approved
appraisers to appraise your log home.
If necessary, we can use another appraiser
upon request. The new appraiser has
to be approved by the lender and must
be licensed and have Errors and Omissions
insurance.
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Time Frame - The appraiser is
hired by the lender, but does not
work for the lender. Your loan officer
will ask for the appraiser's turnaround
time for the completion of their report
to ensure a timely closing of the
loan. Depending on the property location
and availability of the appraiser,
we recommend allowing 2-3 weeks for
appraisal completion.
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Building Plans - In order to initiate
the appraisal, your loan originator
needs a set of your house plans (blue
prints). The plans need to show dimension
and elevation. You can submit your
preliminary plans for appraisal purposes
as long as you do not make any major
changes to the footprint of the house.
For example, changing the square footage,
adding a bedroom or bathroom, or taking
a designated room away, is considered
a significant change. Moving the position
of a window or stairs is acceptable.
Making major changes also changes
the loan because you have then altered
the bank's appraised collateral (your
house).
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Specifications (Specs) - A listing
of all of the materials that are to
be used during the construction process.
This information is collected for
the appraiser to determine what materials
are going to be used and to assign
proper value to the home. Quality
and cost of materials can range greatly
making specs an important part of
the appraisal.
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Building Contract - A signed and
binding agreement between the borrower(s)
and builder. This agreement lists
the scope of the work to be completed
by the contractor and at what price.
An appraisal can be ordered from the
builder's quote.
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Log Manufacturer Contract - A
binding agreement between the borrower(s)
and log home supplier. It needs to
be a fully executed contract with
signatures. Please pay attention to
any additional charges that might
apply to your log package. For example,
freight and sales tax.
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