Home Buyers |
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Home buyers encounter several obstacles in the home buying process. Aside from qualifying for the loan, the real hurdle is locating your property. In times of scarce inventory, choices are few. You may specific tastes & needs that narrows inventory to a few. This day in age, buyers can do their own research, canvas neighborhood. You will still need to rely on your professional realtor.
Renovation loans may provide an alternate choice. The power of renovation loans, is in its flexibility. You can be less critical of home conditions and floor plan knowing this all can be corrected with a renovation loan. See our Category Page.
Let's Get Started
Renovation loans creates new opportunities. Its critical to have an experienced, seasoned team to a successful escrow and a finished customized home to enjoy for years to come.
Teamwork
Creation of your team is crucial to the overall success of a renovation loan. Look for experience and synergy in selecting your team. The following is a brief outline.
Renovation loans may provide an alternate choice. The power of renovation loans, is in its flexibility. You can be less critical of home conditions and floor plan knowing this all can be corrected with a renovation loan. See our Category Page.
Let's Get Started
Renovation loans creates new opportunities. Its critical to have an experienced, seasoned team to a successful escrow and a finished customized home to enjoy for years to come.
Teamwork
Creation of your team is crucial to the overall success of a renovation loan. Look for experience and synergy in selecting your team. The following is a brief outline.
- Realtor - Assists with property value, property selection & managing the selling side.
- Lender - Experience or specializes in renovation loans. A direct lender is preferred versus a broker. A direct lender can directly process and facilitate this specialized loan.
- Contractor - By far your most important selection in the success of your renovation. Interview several contractors to determine their quality of work, financial & experience with construction loans. Get references.
- Consultant - Required in most renovation loans. They are hired by home buyers that verifies property conditions, construction bid & creates required loan documents. They also manage disbursement of funds to the contractor.
Inventory
Renovation loans opens up new possibilities in evaluating properties. In fact, the best opportunities will be properties that has conditions issues.
This creates several key benefits:
Home buyer needs to develop a sense of property value. Location plays a big role in determine value. Identify neighborhoods of your needs and affordability. Aside of getting inventory for sale, also develop a sense of value based on $ per square foot. The appraisal will be based on all of the improvements of the renovation loan.
Renovation loans opens up new possibilities in evaluating properties. In fact, the best opportunities will be properties that has conditions issues.
This creates several key benefits:
- Less competition
- Creative process in improvements
- Co-operating seller
- Creates value
Home buyer needs to develop a sense of property value. Location plays a big role in determine value. Identify neighborhoods of your needs and affordability. Aside of getting inventory for sale, also develop a sense of value based on $ per square foot. The appraisal will be based on all of the improvements of the renovation loan.
Tips
The following are other important considerations to be aware of:
The following are other important considerations to be aware of:
- Realtor to confirm the seller will cooperate with the process
- May need to extend contingency and/or escrow
- Value - Anticipate value on improvements
- Monitor Loan qualification - Purchase + construction bid = 90% of appraisal
- In times of tight inventory, look for properties that have sat on the market. This offers several benefits, price and seller flexibility in working with a renovation loan
- Loan qualification - If you're hitting the loan limits of what you qualify, you may want to consider to scale back the quality of the finishes like flooring, appliances, cabinets. Once the loan is funded, you could use your personal funds or reserves to upgrade your fixtures.