How Do I Apply for a Renovation Home Loan?
Applying for a Mortgage House renovation home loan is a straightforward process. It differs from applying for a home loan. In many respects, the process is less intensive. Moreover, as a homeowner, you have several resources at your disposal to successfully obtain financing for property renovations. Investors can also obtain this loan to revamp properties in their portfolios.
Renovation loans resemble construction loans in the application process. Both require homeowners, owner-builders, and investors to submit their plans with the application.
The first step is to obtain estimates for the costs. Renovations in Australia range from $50,000 to $75,000 on average. Your project might sit on a smaller scale. Thus, you’ll need less financing. Nonetheless, lenders want to know your plans and possible costs. All renovation and construction projects require a cushion so add it to your estimate. Next, explore your financial position. Lenders often finance 80% of the total estimated renovation project costs. Therefore, homeowners must finance 20% of the costs through other means. You can use your savings. In some cases, you can use home equity.
Now submit your plans to the lender with your application. If everything looks good, our Mortgage House loan specialists will hand you a pre-approval. Then, you have an opportunity to hire your crew. The last step is to obtain official approval.
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Apply for a Mortgage House Renovation Home Loan Conclusion
Applying for a Mortgage House renovation home loan is a straightforward process. However, it does require a few extra steps that are similar to construction loan applications. Contact our loan specialists to learn more today.