Getting a 203K loan is not the end to your house repair problems. There are several other documents that need to be taken care of before you finally get the loan. This part of the job should be placed in the capable hands of a 203K consultant.
When a 203K consultant and inspector are hired, their job is to evaluate the house and help assemble a loan package based on that. They then start the process of compiling the right documents for the lender. The point to be noted here is that a 203K consultant does not provide you with the loan, he makes the process easier for you to get the loan.
There are two contracts that a 203K consultant is responsible for:
- Lien Waivers
- Draw Requests
Lien waivers are the rights to the equipments and materials, which a contractor supplies. These materials installed at your property are discussed before the project begins and are listed in the contractor’s package. The lien waiver is made by the 203K consultant for each pay application releasing the contractor’s ability to seek this money from you in the future.
The lien wavers are signed at each draw request and a final lien release is signed at the end of the construction ends when final payment is due.
The draw request takes place in five steps and all of them depend on the inspection of the 203K consultant. Draw requests are the money given to the contractors as work progresses.
- 1st Draw Request: For issuing permits
- 2nd Draw Request: Inspections to make sure that work is done on time
- 3rd Draw Request: Inspections to make sure everything is working properly
- 4rth Draw Request: Repairs remaining or needing another repair on the punch list
- 5th Draw Request: Final 10% payment to contractors and sub contractors
A 203K consultant can make the process of getting and managing a 203K loan extremely easy. At Beryl Engineering and Inspection, a 203K consultant makes sure that all things are done under a budget and in a timely manner. For further information about their 203K inspection service, call at (813) 358-0379.