1. Get pre-qualified and consider a full pre-approval. This statement is true for any type of loan. If you are a well qualified buyer, a pre-qualification is sufficient from the right loan officer. But if you have a couple issues that require review from an underwriter (loan decision maker), get fully pre-approved. The difference is that with a pre-approval you supply your supporting documentation (W2's, pay stubs, etc.) and sign an application disclosure package. The result is a loan commitment and much stronger negotiating power with sellers.
2. Get organized. Once you find the right house and negotiate the contract the real work begins. For most buyers, you'll need to turn your pre-qualification into a loan approval/commitment and lock your rate. At the same time, you will need to begin working with your general contractor(s) to specify the scope of work and cost of renovations. These need to be nailed down prior to ordering the appraisal so we can determine the "after improved" value.
3. Give plenty of time. Try to negotiate a 60 day contract to close period to give yourself and us the time needed to coordinate the financing and renovation. We may be able to close faster but there are many variables at play and you don't need the extra stress of a quick closing.
4. Be decisive. If you have trouble picking the toppings to put on your pizza, this may not be the right loan program for you. Identify what you want to renovate and make it happen.
5. Consider hiring a HUD consultant. Usually HUD consultants are used for larger renovations and ones that include structural items. However if you could use help identifying the scope of work and working with contractors, a HUD consultant may be right for you.
Most importantly, work with a real estate and mortgage company that is committed to your success now and in the future: The Allen Tate Company.
Call or email me if you are interested in learning more about our renovation lending program.
0 comments:
Post a Comment