Homebuyers who want to purchase a home and renovate it to create their dream home have several options. Even if the property was a foreclosure, there is a mortgage option for financing the property and getting the funds needed to repair the property. Reviewing steps for buying an existing home and renovating the property shows the borrower what to expect.
Get Preapproved for an FHA 203(K) Mortgage
Homebuyers who want to get started with their home search get a preapproval for an FHA 203(K) mortgage. To qualify, the borrower must have a credit score of at least 620. It isn’t necessary for the borrower to be a first-time buyer to qualify. The total mortgage amount plus renovation expenses help the borrower determine how much funding is available to them to buy a home and renovate the property.
Start the Property Search and Find an Existing Property of Interest
Starting the property search and finding an existing property of interest helps the borrower determine how much their dream home will cost them. A real estate agent can help the buyer review properties based on the buyer’s budget and help the buyer review what types of renovations are needed for the homebuyer to move into the property. If the buyer is purchasing a foreclosure, it is possible that the buyer will need to complete more complex renovations to bring the property up to code. Buyers who want to learn more about reviewing existing properties and financing the property and renovations can see his Twitter page for more details.
Get an Estimate from a Contractor
Getting an estimate from a contractor helps the buyer determine how much the renovations will cost them. If the renovation costs are outside the buyer’s budget, the buyer will need to review more properties. Some real estate agents recommend that the buyer should take a contractor with them when looking at additional properties and calculating the renovation costs. If the property buyer doesn’t want to make complicated changes to the property, they could lower their expenses and save more on their mortgage. However, the property inspection defines what code violations are present in the property.
Present Details to Your Lender
The buyer must present all details about the property to their lender. This includes the selling price for the property and at least three estimates from contractors for the renovation projects. The lender helps the buyer review their options and define what opportunities are most affordable. The buyer must be able to afford the mortgage along with property insurance and mortgage insurance if required by the lender. The lender may require more extensive property inspections to determine what repairs are needed before the property is inhabited. The FHA 203(K) mortgage finances up to 97% of the selling price.
Homebuyers who want to buy an existing home and complete renovations apply for an FHA 203(K) mortgage. The loans provide the purchase price of the home and funding to renovate the property. Homebuyers who want to learn more about securing the loans can contact a lender right now.