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How the Remodel/Rehab Loan Process works

By
Mortgage and Lending with Community First Financial

Remodeling or Rehabbing a new home is rewarding and exciting. Understanding the home Remodel/Rehab loan process is an important first step in your home remodel journey

The Construction-to-Permanent Loan process is similar to the process of a standard home purchase or a refinance transaction. But, unlike a purchase transaction for an existing home, a Construction-to-Permanent Loan involves determining the value of a home that is not yet constructed.

To assist the appraiser in determining the value of your new home, I request information on the planned improvements and construction costs. I also review the performance history of your builder to ensure a track record of success in on time and on budget home completions.

To help you better understand how the Construction-to-Permanent Loan process works, I've provided this simple breakdown of the Remodel/Rehab Loan Process to help make your home remodel journey as easy as possible.

These are the items you should be aware of during the remodel/rehab loan process:

  1. Loan Budget Estimate
  2. Loan Application
  3. Additional Documents
  4. Appraisal
  5. Loan Processing
  6. Loan Closing
  7. Disbursements
  8. Permanent Mortgage

 

 

 

Nick Porter

Community First Financial, LLC

7575 E Redfield Rd, Suite 235

Scottsdale, AZ  85260

480-305-8900  Ext: 308

541-231-3040  Cell

480-718-8802  Fax

www.communityfirstfinancial.com

Show All Comments Sort:
Alix Pinzon
Open Mortgage, LLC NMLS # 2975 - Downey, CA
(562)743-6086
Hey Nick,  I have an appraisal that was completed for one of these loans, and it was pretty complex.  I kept a copy of it for future reference.  Expect the appraisal to cost almost double the normal cost.
Dec 10, 2007 08:36 AM
Bret & Meredith Amon
LIV-Sotheby's International Realty - Breckenridge, CO
Breckenridge, Keystone, Silverthorne, Frisco,

Thanks, Nick.

This is very imformative and benefical.  I will pass it on.

Thank you,

Meredith

Dec 10, 2007 08:37 AM
Konnie Mac McCarthy
MacNificent Properties, LLC - Cobb Island, MD
Broker/Owner - VA & MD "Time To Get A Move On!"
I just showed a home saturday to a young woman who can't afford much, but we found a foreclosure that needs cosmetic repairs, we were discussing the possibility of her getting this kind of loan.....I did n't know much about them...
Dec 10, 2007 09:16 AM