So you’ve decided you’ve had enough and want to finally do the major renovations to your home you’ve always dreamed of. Now what?
Here are the steps to move forward with your remodel:
- Initial consultation for financing. Let’s look at your situation. When you purchased your home, what your current loan to value looks like, what your dream renovation looks like, what it might cost and what you can afford. Remember, this is a regular mortgage with your renovations added to the loan – so getting you approved in the beginning for your new loan is important!
- Initial consultation with your contractor(s). Choose your own contractor or let me help connect you with some of the best contractors in the metro area! With my 18 years renovation financing experience I have worked with individual contractors and large home improvement companies who can do small remodels to pop tops and everything in-between!
- My renovation team. Caliber Home Loans has the most experience renovation team in the lending business. They’ll work directly with you the customer and your contractor to make sure the process is as smooth as possible from the time I start your loan to the time your final draw is released!
- Pulling everything together. Once we’ve approved you for financing, you have chosen your contractor, our renovation team has all the documentation they need including the final approved bid, it’s time to move forward with the appraisal.
- Appraisal ordered, loan closing. We’ll order the appraisal, the bid is sent to the appraiser to get us the “subject to repair” or after-improved value of your home. Once the appraisal is in, the value is supported and the underwriting loan conditions are met, it’s time to close your loan!
- Post close. We’ve now closed your loan. The renovation money is placed in an escrow account held by Caliber Home Loans. Let’s start the renovations! Some money is released up front to your contractor to pay for permits, architectural fees, engineering and a percentage of materials. The remaining money is released as the renovations are completed. If there’s money left at the end of your renovations, it’s either applied to the principle of your mortgage or you can do additional renovations that will need to be approved.