Sunday, 17 January 2021

Home Improvement Loans and New Construction Financing – Designing Spaces

(music) Home renovations can be fun, but expensive

So Designing Spaces looked for ideas on how to finance that new kitchen or bathroom Watch this "There's no place like home" isn't just a famous line from a movie It's a mantra we all repeat every time we come home from a long day of work or celebrate a special moment It's where we share our memories

But, what if home sweet home need a little sprucing That's when a renovation loan comes into play Joining me today is Ryan Kiefer, home loan officer, from PrimeLending Ryan, it's so good to have you here today Well, thanks for having me

I'm happy to be here You know, PrimeLending has made many visits to Designing Spaces, so I feel like I know your mortgage company very well But, I'm very excited to learn about the renovation loans Well, it's a great product, especially in the current market It's a little bit of a tight real estate market right now

Maybe you can't find exactly the home you're looking for, so you can identify maybe that fixer-upper, borrow money to handle it that way, or maybe purchase in a neighborhood that's a little more expensive than you otherwise would've thought of Is it a special kind of mortgage? It is a special kind of loan It's a regular mortgage loan in the sense that it's one application, one approval process, one closing, one mortgage payment Good Yes, so it's nice and easy that way

It's a little bit special different in that we're going to escrow or set up money post-closing for you to handle the repairs of the property So, let's say I want to redo my entire kitchen How does that work? That's a possibility We see a lot of that We see a lot of redoing of kitchens, you know, master bathroom updates and that type of thing,you know, swimming pools, what-have-you

But, we can handle all those sorts of things (music) Okay, so how does it work? Good question How it works exactly is you're going to identify exactly the type of work that you want to do upfront Identify a contractor, of course, that you'd like to do the work, and then we will handle the due diligence on the back end of getting the contractor approved, making sure they have proper licensing, bonded for the local jurisdiction

You do all that? We'll handle all of that for you And then we'll set the money aside in that escrow account, and you have anywhere from 30 days up to 180 days in some cases to get the work completed after you close upfront Then, we'll send an inspector back out to make sure the property — you know, that the work has been done up to standard Then, we'll then release the funds to pay the contractor at that point And, then also make sure that the property is going to appraise high enough on what we call a "subject two" or "future value" of the home to where the property is going to be at worth, at least the money that we're going to put into it

So, we're not lending too much and you're not getting in over your head It's to protect you and us Okay Good point I wouldn't have thought of that

Okay I have to ask you about your customer service, because you guys really go over and beyond when it comes to customer service So, let's talk a little bit about that Yeah, we do, indeed I have Mo here behind me

Which — Mo, the Buffalo It's short for Momentum The company has had great momentum for a number of years We are annually a top ten purchase lender in the country We strive for excellence in that area especially

But, also, we do have local operations with processing and underwriting, which is great local decision making for our clients We keep them up-to-date at least weekly with status updates on their loans, really walk them through the process The communication is key The communication key, and most often we close in 30 days or less, which is huge in the current environment Absolutely

Just really strive to be transparent and honest with the mortgage process overall Which is a very nice refreshing trait So, thank you so much for coming here today, really sharing your expertise with us We really appreciate it Thanks for having me

Thank you Well, if you've missed any of what we covered here today, you can head over to our website at designingspacestv You can also visit us on facebook and twitter Thanks for joining us

(music) You can visit these websites to learn more about the participants on this edition of Designing Spaces (music)

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