Do I Need to Show Mortgage Lenders My Renovation Plans?
Undergoing the mortgage application process is an intense experience. The good news is that most loan applications afterwards don’t match it in intensity. Instead, they have different parameters. The process for obtaining a renovation home loan is similar to applying for a construction loan. Lenders request project estimates and plans before giving a pre-approval.
In most cases, lenders will finance 80% of the estimated total project costs. It’s up to the homeowner to finance the remaining 20%. If the homeowner hires a professional crew, some lenders will bump the loan-to-value ratio to 90%. Since renovation home loans have a specific purpose, lenders ensure that the funds they issue will satisfy them. Therefore, evaluating the plans and estimates helps them check the legitimacy of the project.
Mortgage House is a non-bank lender. Our goal is to place our clients in a financial position to succeed. If the costs seem exorbitant, our loan specialists will point them out. It’s in the best interest of homeowners to hire the best builders and purchase the best materials. However, projects that go over the average maximum will raise a red flag.
Obtaining a Mortgage House renovation home loan is a great way to become one of our clients. As a client, you receive access to attractive rates and the rest of our mortgage choice products.
Renovation Home Loan Plans Conclusion
The renovation home loan application process does require homeowners and investors to submit their plans. To start the process, contact our Mortgage House loan specialists.