203K Consultant | If the property you bought requires repairs and the costs exceeds more than $35,000, the property needs professional guidance and experience in engineering and construction. Usually, the owner of the property does not have the required professional experience to look after such a huge project all by his or herself, this is when required help of a 203k consultant is needed. 203k consulting assist in a timely completion and closing of the 203k applications for loans.
Functions 203k Consultants Perform
A 203k consultant will visit the site along with the borrower to examine the work that will need to be done. Accordingly, the feasibility of the project will be made.
The consultants then make project specifications, and according to the specifications, they draft a cost analysis to know its feasibility. The borrower now invites interested contractors who are willing to do the work to the property. When the borrower is selected the 203k consultants will have to approve of it. Usually, 203k consultants have a number of qualified contractors, and they will prefer the work to be done through them.
As soon as the contractor is selected and the conditions of the loans are met , a 203k consultant will schedule a loan closing for the borrower. At this point the renovation work is started after keeping the funds for the repair escrow.
203k inspectors also draw request inspections, which are done in 5 draws.
1st draw is processed when the consultant ensures that the necessary permits have been issued.
2nd and 3rd draw are issued when the work is in progress.
The 4th draw is issued after the 203k consultants hand over the punch list of unfinished tasks to the contractors.
The 5th draw is issued after the completion of the work, which ends with a final inspection. The consultants also release liens and warranties about the completion of the work.