Written by Mercedes Hayes

It might not be too big of an exaggeration to say thatrepparttar construction loan is one ofrepparttar 147688 more daunting aspects of building your custom home. Before we started our project, I had nightmares about trying to pay two full mortgages atrepparttar 147689 same time (our existing mortgage andrepparttar 147690 construction loan), and I didn't see how it was at all possible. However,repparttar 147691 reality ended up much more reasonable than I dared hope.

COLLATERAL: Many but not all mortgage companies require you to own your land first before you apply forrepparttar 147692 construction loan. That way, ifrepparttar 147693 borrower defaults,repparttar 147694 bank has a way to recoup their investment. Some banks will let you roll inrepparttar 147695 land purchase withrepparttar 147696 construction loan, but you may have to pay a premium.

TIMING: Your standard construction loan will be based onrepparttar 147697 one year plan. It's perfectly reasonable to expect to finish within a year, unless you are building a handcrafted log home. The good news is that you aren't obligated forrepparttar 147698 full construction loan amount from day one. You only have to pay interest forrepparttar 147699 amount of money you actually borrow from each draw. So you won't really be carryingrepparttar 147700 full mortgage untilrepparttar 147701 end of construction, at which point you will rollrepparttar 147702 construction loan over to a conventional mortgage.

BUDGETING: Before you apply forrepparttar 147703 construction loan, you must get all your quotes in order. Banks are not happy about increasingrepparttar 147704 amount of money you ask for. Be sure to account for allrepparttar 147705 sub-contractors (plumbers, masons, electricians, excavators, landscapers),repparttar 147706 well and septic,repparttar 147707 windows and roof,repparttar 147708 painters, and evenrepparttar 147709 grass seed. Your mortgage representative will expect you to have a handle on all your financial needs (see my article BREAKING DOWN THE BUDGET OF YOUR LOG HOME for more specifics). If some of these expenses will be out of pocket, it wouldn't hurt to include them in your construction loan request anyway, so you have a cost overrun buffer. And get more than one quote if possible, then userepparttar 147710 highest quote inrepparttar 147711 construction loan request. If you go withrepparttar 147712 lower quoted job, you'll have another buffer in your favor.

Beforerepparttar 147713 mortgage company agrees onrepparttar 147714 loan, they will require a copy ofrepparttar 147715 floor plan, permits, and survey. Then they will send out an appraiser who will inspect your property and determine whether your project will appraise forrepparttar 147716 amount of money they are committing to. Luckily, more and more banks are giving log homes a fair appraisal, but it helps to choose a company that specializes in log homes or your market value may come in too low.

DRAWS: When you've itemized your anticipated expenses, you can share this with your mortgage rep., who will then ask you how you would like to break downrepparttar 147717 disbursements (or "draws" as we commonly know them). This will be your decision (with a little hand-holding). At first, you might want to schedule a couple dozen draws, until you realize that there is a service charge attached to every draw. For instance, every timerepparttar 147718 bank releases a draw, you have to notify them a few days in advance. The bank sends out an inspector to verify thatrepparttar 147719 promised work was performed. Then they order a Title Search to verify that you haven't had any liens put on your property sincerepparttar 147720 last draw (this costs about $125 each time).

Making a Pen with Your New Wood Lathe

Written by Kaitlin Carruth

So you just purchased a wood lathe but do not know what kind of project you should start out with. As soon asrepparttar right amount of skill is obtained, beautiful pieces of woodwork can be created with a wood lathe. However, before you get too over your head, it is best to start out with a basic woodturning project. My recommendation would be beginning by carving your very own pen.

Pen turning is a common hobby or past time. These homemade pens can make excellent gifts for any event. Pen turning is a fun yet practical project that can help you get a taste ofrepparttar 147630 capabilities of your wood lathe. The following are some tips in preparing your wood forrepparttar 147631 lathe that will help you make your first wood lathe experience successful.

1. Pick an interesting wood blank. One ofrepparttar 147632 great things about pen turning is you can use any sort of wood you want, including scrap pieces from other projects. Pick out a piece of wood with interesting figuring. Be aware that some wood changes appearance with light and air exposure and will begin to look dull with time, such as Paduak or Purple Heart wood. If you are not comfortable using a scrap piece of wood there are numerous wood blanks that can be purchased in all sorts of exotic woods.

2. Examine your wood. It is very important that you examinerepparttar 147633 wood you are using for your pen project. Make sure that your wood is dry and without faults or cracks. Damp and cracked wood will make for a lousy pen, if you can even make one out of that type of wood at all.

3. It is better to be oversized than undersized. If you have to choose between an oversized wood blank and an undersized blank, always chooserepparttar 147634 oversized one. This will give you some leeway just in case you make a mistake.

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