4 Easy Steps to a Renovation Loan

Renovation Loan

Now’s the perfect time for a home renovation, which means it’s time to learn about renovation loans. Unless you have a bundle of cash stashed away, most homeowners work their remodel with a loan. Here are the four easy steps to get you there.

Step #1: Get Pre-Approved

Just like any home loan, it’s essential to get pre-approval before starting down the road to planning your renovation. Many renovation loans are part of a mortgage and include a reserve placed in escrow for the renovation work. Working with a lender is the best first step.

Step #2: Find Property

The next step in the process is finding a property in the area you want, even if it needs extensive work. That’s what the renovation loan is for – to make the house you want out of the house you can afford.

Step #3: Determine the Work that Needs Doing and the Contractors to Do It

Carefully assess the property for work you’d like done. Work with experienced contractors to make sure what you want to do is doable and get some quotes. Several quotes to compare pricing and timing is essential.

Step #4: Work with Your Lender

Your lender can help you with the paperwork and the renovation quotes to put together a loan package that will help you buy the house and include the cost of the renovation work. Once this is in place, you can move forward with the house purchase and creating the house you envision.

Are you looking for a house in a specific location within a limited budget? A fixer-upper might be just the ticket. Plan ahead with a renovation loan built into your mortgage. Contact the experts at Midland Mortgage Corporation to find out more.

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