While the first one doesn’t require any further work, the latter might call for major renovations. Fixer-upper houses are sold as-is and you have to put in a certain amount of work before they can be considered finished.
While some require cosmetic updates like paint, carpet, or flooring, others have major structural or mechanical issues. Today we are going to take a look at the different ways in which a mortgage lender can help homebuyers in this process:
When you start looking for a house it becomes difficult to look past the wood paneling on the walls and worn linoleum flooring. But a mortgage lender carries deep knowledge of the housing market and can help clients in keeping their minds open and consider the house layout as the carpet, paint, cabinets, flooring, etc. can be altered easily.
Staying Within Budget:
While looking for a house, people proceed with a budget in their mind. But sticking to that budget becomes difficult in the case of a fixer-upper house as knocking down a wall might blow a hole in your budget.
A mortgage lender has your financial documents and carries the knowledge of your affordability parameter. As a result, they match you against properties that are within your budget threshold in terms of renovation costs.
Doing Home Inspection:
Conducting a thorough inspection is critical before deciding on a fixer-upper project. An inspection can help identify problem areas that might otherwise blow your budget.
Mortgage lenders have great rapport with people working in the housing community and can help homebuyers in getting the inspection work conducted.
While cosmetic defects can be spotted easily, it is difficult to gauge whether the house has foundation loopholes.
Getting a timely inspection will help in diagnosing these problems which can sink your budget if left undetected initially.
Mortgage lenders can help home buyers choose the projects strategically by prioritizing them according to type and cost.
Some of the highlights which need to be considered here are structural changes and additions like the exterior, roof, and changes to load-bearing walls, cosmetic updates like carpet, paint, and flooring, and system updates like electrical, plumbing, and HVAC.
Once you have decided on buying a fixer-upper, next you will have to look at its financing aspect in the form of a home loan. Mortgage lenders can get you pre-approved for the same.
They will check out your financial history and determine the amount they are ready to offer as a home loan.
Having Strong Credit:
At times the pre-approval of loans is rejected mainly due to the poor creditworthiness of homebuyers. A mortgage lender can boost up this important financial numerical which is needed to gauge your credibility in paying off debts.
The lower your score, the more difficult it is going to become to get a loan. The mortgage lenders offer a free credit boosting guide and conduct a rapid re-score for correcting your credit report information within a few days.
Fixer-upper houses have evolved into a popular choice of homebuyers as they allow creating your home equity. However, before you decide on buying a fixer-upper house you need to develop thorough knowledge on what needs to be updated and whether you can afford the same financially.
A professional mortgage lender like MLD Mortgage carries thorough subject knowledge to help you with the same. The mortgage lenders transform homeownership from a distant dream to a reality for a majority of people who do not have enough cash or an adequate credit rating to get the loan through.
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