5 Things Your 203k Consultant Will Do For You
A home buyer financing with a 203k loan might want to consider a 203k consultant to streamline the process if the home is in need of repairs. What exactly do these people do?
Here are 5 of the most important things to expect from a 203k consultant:
- Initial Site Visit – Upon choosing a 203k consultant, a thorough inspection of the home will be completed to assess whether or not the project is feasible under the 203k requirements. If the project is given the green light, this is when an agreement and fee schedule is put in place.
- The Plan – With the combination of the site visit and your renovation plans, a 203k consultant will then prepare the complete plan of the project with precise specifications. This plan will include a breakdown of the costs associated with each repair, as well as packages for lenders and contractors. Once complete, the 203k consultant will send all of the above documents to you, the lender, and the contractor.
- Choosing Your Contractor – With the documents prepared by your consultant, you will be able to view bids from competing contractors. Be sure your contractor understands that you are working with a 203k loan, and completes the work according the schedule put in place by your 203k consultant.
- Loan Closing – Once your package is complete, you have chosen your contractor, and your lender agrees that the loan conditions have been satisfied, it’s time to schedule your closing date. After your documents have been signed, your funds needed for repairs are released into escrow and the real work begins!
- Fund Request Inspections – You 203k consultant will confirm that all permits have been pulled and the 1st draw will be processed. Based on the schedule he/she put together, your consultant will make subsequent visits to inspect work completion in order for more funds to be withdrawn. After the 4th draw, your consultant will give your contractor a list of things that need to be completed or fixed, and the 5th draw will be held until all work is completed and the final inspection confirms.
All of these steps, which require the active role of a 203k consultant are crucial to purchasing and renovating a home funded by a 203k loan. For questions, or to schedule your initial site visit in the Tampa Bay area, call Beryl today!