Have you been thinking about buying a home that needs a little extra tender love and care, but you do not have all the funds to afford this new project? Or maybe you already have a home that needs some major improvements? Well, if this is you then you can apply for a mortgage refinance. To help you get started, here is everything you need to know about a purchase plus improvements mortgage.
What Is A Purchase Plus Improvements Mortgage?
This is a mortgage where you can purchase a property and obtain a mortgage for up to 95% of the price of the home along with the renovation costs that you want to do to the home. In addition to purchases you also have an option to refinance where you can borrow a maximum of 65% of your home’s value after it has been renovated. This money is to be used strictly for renovating purposes.
How To Obtain a Purchase Plus Improvements Mortgage
You can obtain a purchase plus improvements through five simple steps.
1) Pre-Approval: Get pre-approved. We will go through all your financial documents and run a credit check on you to determine how much you are able to borrow. Once you know your maximum borrowing amount, you can start looking for a home.
2) House Search: Beginning your house search should be easier now that you know what price range to shop in. When you find a home you are interested in, you need to get an idea of how much the renovations are going to cost. The home you purchase and the cost of renovations cannot be more the price of the loan you were approved for.
3) Offer / Quotes: After you have put an offer down on a house and the seller has accepted it, we will ask you for a copy of the offer, along with the quotes for the renovation. We will then incorporate all these costs into one mortgage.
4) Start Renovating: Now that your loan has been approved and signed for, and the house is legally yours, you can start the renovation process. Once the renovations are finished, we will send out an appraiser to look at the finished product. After they inspect the renovations they will confirm that you stayed within your budget and confirm the value. The lender may also require proof of all the invoices that you paid for.
5) Enjoy: Once the lender receives the appraisal report and approves it they will release the funds from your mortgage so you can pay for the portion of the construction that they have agreed to finance. You can then in turn pay your contractor.
Contact
For more information on our mortgage refinance options, or to get started on your purchase plus improvements mortgage application, please contact me at 604-217-5025.
Also for information on our mortgage products, please visit our website at www.melaniezmortgages.com