By Barbara Lehrer
Real Talk
Barbara Lehrer.
If you have been passing on properties to purchase because they need too much work, you just might want to read further. Once you have found a neighborhood and the yard you like, why not roll the renovation costs into your mortgage and make the upgrades right after the closing? Take a blank canvass and design your own space.
There are many benefits to using a rehab loan. First, you get to hold onto your savings and get a good interest rate. Next, you will have instant equity as you finish the project. Voila – the sum of the purchase price plus the renovations is now complete, giving your home more value right away.
Many first-time home buyers or empty nesters view homes that require roofs, kitchens, septic systems, heating systems or windows. They may decide it is not worth the long-term effort to customize. In reality, if they wait a month to move in after the closing and get the quotes firmed up with your professionals, they can move into a renovated home that they designed, fast.
We all know that you cannot get a conventional loan if a heating system is not working. Imagine working out the details and ending up with a conventional loan and having all new mechanics. Just start with a well-priced, good quality property and move forward. Pay now or pay later, as they say.
You could wait years to make the upgrades that you make allowances for each year, or you can make that list, see if the property will be worth a much greater value after completion and get a bank appraiser in to assess if all is right. Not all lenders do this, but it is becoming more and more popular as buyers do not have the necessary extra funds after closing to finish a home the way they envision it.
Whether it needs super rehab or just a new kitchen, why wait? Why wait when there are easily accessible programs out there from reliable lenders. Review these options. Whether buying or selling, a realtor can help you use these great tools.
If you need more information on these issues, email Barbara.Lehrer@cbmoves.com.