We work with you, your mortgage lender, and contractor to ensure a smooth process:
I. Site Visit for Feasibility Study
- Consultant meets with the borrower at the site.
- A general examination of the work to be done determines if the project is feasible.
- If feasible, Client signs Consultant Agreement and pays Consultant fees.
II. Once the contractor estimate is final, we prepare the Specification of Repairs:
- Project specifications
- Construction cost analysis
- HUD required draw request forms
- Preparation of lender packages
III. Consultant delivers the Report Package to:
- Mortgage Lender
IV. Selection of a Contractor by the Borrower:
- It's important to choose a contractor that is familiar with the 203k loan process. If not, the contractor needs to be educated on the process so that there are no misunderstandings. Mortgage lenders have requirements and vetting processes for contractors. They must be licensed when necessary, have liability & worker's compensation insurance, and do the appropriate paperwork with the lender.
V. Once the Loan Closes:
- Repair funds are placed in escrow.
- Remodeling begins.
VI. You are allowed up to 5 Draws for funds:
- 1st Draw - Consultant insures permits were issued.:
- 2nd and 3rd Draw - Draw request inspections are performed as work progresses.
- 4th Draw - A punch list is established.
- 5th Draw - The project is closed out and warranties and lien releases collected.
Please call us - it's not as complicated as it sounds. We will guide you.