The steps to a perfect renovation loan
If you're looking for the perfect home in today’s competitive housing market, you might be looking for a while. But with a renovation loan, homebuyers can fix a flawed property in their perfect neighborhood, while homeowners can enhance the value of their home without draining their savings.
Our team of dedicated Renovation Specialists can help assist you throughout the process from start to finish, but before getting started it’s important to understand how each step in the renovation loan process works.
1. GET PREAPPROVED IN MINUTES
Use our Digital Mortgage to apply for the renovation loan.
2. FIND YOUR PROPERTY
Shop around for your ideal fixer-upper.
3. MAKE AN OFFER
Contact your Renovation Specialist to complete the preparation of your loan file.
4. MEET HUD CONSULTANT/CONTRACTOR AT THE PROPERTY
Set an appointment with your HUD consultant or contractor (when required) to conduct a project review and determine any mandatory and optional repairs.
5. OBTAIN CONTRACTOR BIDS
Receive a bid for improvements to be completed (Consult with architects, designers or engineers, if applicable).
6. ORDER APPRAISAL
Your mortgage team will order your appraisal, property title and tax transcripts. Send the repairs to order the appraisal.
The final underwriting process is conducted, so you may receive conditional approval. Then review your appraisal and final renovation budget with your Renovation Specialist and prepare for closing.
At least three days before closing, you'll receive, review, sign and return your Closing Disclosure.
9. RENOVATION BEGINS (Up to 5 draw requests)
Ensure your contractors understand the contractor validation and construction draw processes. You can pull out/draw money from your renovation loan up to 5 times to pay for specific tasks, contractors and for any necessary supplies.
10. FINAL INSPECTION COMPLETION
After completion, a final walk-through is conducted to ensure all repairs have been completed and the building is up to code.
Contact one of our Renovation Specialists to learn more!
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Guaranteed Rate for current rates and for more information.