Financing in Los Angeles>Question Details

LAhomebuyer, Home Buyer in Los Angeles, CA

Currently remodeling and looking to refinance, will we have an problem?

Asked by LAhomebuyer, Los Angeles, CA Wed Nov 28, 2012

I just put up a new wall separating my bedroom and bathroom, but haven't yet put up drywall in the bathroom because we are still planning. We really want to refinance but we are worried this is going to be an issue. I was quoted $400 to put the wall up without painting or finishing the electrical. This is a wall I would put up, take down and put up again. Do you think this will be an issue with the lender if I don't put the wall up?

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What do you mean by Yet?. Are you planning to install electric or plumbing? If so you may be in need of a permit. I'm not talking loans because I'm not a lender. But as an experienced general contractor and real estate broker you could have issues.
0 votes Thank Flag Link Fri Nov 30, 2012
Thank you for your responses. It isn't a load bearing wall just an insulated drywall separating the bedroom from bathroom. Bathroom side shows exposed insulation with no electrical wires installed yet. I spoke with our previous appraiser and he said it should be okay.
0 votes Thank Flag Link Fri Nov 30, 2012
I'm not a realtor but an investor. Are you referring to the banking side of refinancing or the remodeling side. As long as you have equity and credit score is above 719 with no glitches it should fly probably help lower your existing rate also by doing a refi.
0 votes Thank Flag Link Fri Nov 30, 2012
As I stated earlier, as long as you're not compromising any load bearing walls, making any structural or utility modifications or changing out any exterior doors and windows you should be fine. If it's just a wall with no electrical outlets or plumbing I don't see a problem.

However, if you want to be safe you may want to call your building jurisdiction annomously and ask them. But be aware that even if it's not necessary to pull a permit the building department may want you to pull a permit anyway.

They generate revenues from permits and most building departments will do anything they can to do so. I've actually had them lie right to my face when both they and I knew they were lying. But they could care less.
0 votes Thank Flag Link Thu Nov 29, 2012
It will depend what the appraisal would report of it. If this would not meet the building and safety guidelines, then there will be an issue. Otherwise, it might go through.

Good luck.
0 votes Thank Flag Link Thu Nov 29, 2012
It may be an issue, it depends on whether or not the the finance company requires an appraisal and if tht appraisal requires the appraiser to comer into the house. I suggest you finish the work as much as possible and then proceed.
0 votes Thank Flag Link Thu Nov 29, 2012
If what you are doing requires permits, the lender will not consider your price/value adjustment without permits. Your contractor should be able to confirm. If you have permits for what additions you are making, and the work is "complete" then you should be fine. If work is considered incomplete, then you will probably not get the loan when the appraiser goes out and sees that there is no wall- it's considered "inhabitable as-is". That said, I think you should put the wall up. $400 is not something you want pass up to miss out on your loan.
0 votes Thank Flag Link Wed Nov 28, 2012
Unless it's a load bearing wall not to worry. You can do just about anything you want cosmetically including knocking down and repostioning non load bearing walls. But you cannot change out a load bearing wall, window, door, plumbing, electrical, sewage, HVAC, etc without a plan, permit and inspection.
0 votes Thank Flag Link Wed Nov 28, 2012
Not sure but I have a great loan officer I work with if you need a referral.
0 votes Thank Flag Link Wed Nov 28, 2012
By far the easiest and best way is to check with the bank/lender in regardss to their requirements for refinance.
0 votes Thank Flag Link Wed Nov 28, 2012
Depends on the lender and type of loan. I would check with them before I start the application to save time.
0 votes Thank Flag Link Wed Nov 28, 2012
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