Compile a list of contractors. You are going to need a licensed, reputable contractor to give you estimates and eventually to perform the work. If the property needs a lot of repairs, you may need to hire a general contractor who will then hire sub-contractors. Keep in mind that the bank is going to have to approve the contractor you select. It will check the contractor's credit and credentials. Ask the contractor if he has ever worked with a renovation loan. It is usually easier to get a contractor approved if he has already gone through the process once or twice before.
Identify a property. Contact a reputable Realtor to begin your home search. Tell your agent that you are already approved for a renovation loan and just need to identify a property.
Once you have identified a property you will need to get estimates; try to secure at least three estimates for the repairs. Keep in mind that depending on the type of loan, there may be a cap on the amount of repairs allowed. Also keep in mind that the property has to appraise for a repaired value that is equal or greater than the loan amount and the repair amount.
Select the contractor and estimate you will submit to the bank. The bank will work with the contractor to get him approved. If the bank does not approve the contractor, you will need to submit another contractor and another estimate.
The bank will send an appraiser to the property. If the property appraises at the right price, the process will continue.
Now you wait. The bank will ask you for all the required documents. It will verify your employment and funds to close. The process usually takes between 45 and 60 days.
Once the bank approves the loan and approves your contractor, you will be ready to go to settlement. You are ready to begin the repairs after closing. The bank will make a schedule of draws for the repair money. It may send someone to inspect the process. Once you have closed on the property, you have a specific period of time in which to finish the repairs.
The Peggy Cobrin Team
Call or Text 847-707-8907
Happy New Year!!!
best of luck!
to be pre-approved for a loan, and are you really pre-approved or just pre-qualified.... Careful...
But no matter what you do not seem to have a lot of experience in buying properties, therefore you
should and must work with your own trusted Realtor, a Buyers Agent who will work in your interest and your interest only, remember that the listing agent has a contract with the seller and does work in the best interest of the seller.
Then once you connected with a Buyers Agent, all that really is required from you is your loyalty and
100 % commitment to this one Realtor, so that your Buyers Agent also can 100 % commit to you.
I wish you would get back to me so that I can e-mail you a list of all the services a Buyers Agent would
provide to you and all the advantages for your the buyer, do not do this on your own.
And no you cannot use any additional amount of a now really just a pre-approval, the final loan
commitment of the lender will be based on you providing all information about current debts like
car payments and other, your income proof, and the purchase price, the lender will need the copy of the sales agreement, and the lender will send an appraiser of their choice to make sure that the
home you are buying will appraise out, if it does not appraise out you will not get the loan commitment....
You need a truly good Realtor, who will guide you through the entire process and explain every step to you in detail, including the financial side and the contract terms and what is required from you
the buyer. Feel free to get back to me anytime.
Good Luck to you and congratulations that you are ready to buy a home. It should be a very pleasant and fun experience with the right guidance of an experienced area Realtor by your side.
Remember that a buyers agent does not cost you anything, only your loyalty and commitment to
Edith YourRealtor4Life & Chicago and Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
And always with a SMILE ïŠ
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties ---- EdithSellsHomes@gmail.com
Check out my website at htttp://tinyurl.com/YourRealtor4Life
HAVE THE MOST WONDERFUL DAY :)