Finding the Right Lender for Your Rehab Project
If you’ve ever purchased real estate, you know how important finding the right lender is. Not only does a lender give you the money to make the purchase – they become a partner, giving you advice and watching your back when it comes to all the hoops you jump through when purchasing property. So, much like finding the right location and rehab contractors for your project, you should target finding the right lender. Check out these tips:
203K Rehab Loan Tips
Tip #1: Do research on your lender. Are they new to this, or have they done dozens of rehab loans? Rehab loans come with twists and turns, and you want someone that knows the ins and outs of the scope of work you want to complete. Additionally, make sure you know who underwrites the loan. Will your rehab loan lender underwrite the loan themselves, taking the time to research the property and the scope of work? Or will they farm it out to someone who will just see your loan as a number?
Tip #2: Timing. It takes time to get loans up and running – make sure you plan ahead for your loan. For some lenders, 90 days is typical, so if you need the money faster, be sure to research ahead of time so you are not scrambling to find someone last minute. Remember to ask how the money will be dispersed. Will you get funds immediately at the closing, or will it take 30-60 days to get access to the funds you need to get started on the rehab?
Tip #3: Know the details of the loan. With rehab loans, there is a set period of time to get the repairs and upgrades done on the property you purchase. Six months is pretty standard for most rehab loans, so make sure you have got your project planned out (scope of work), and that you’re sticking to a timeline – construction will need to be complete by the period laid out by your lender.
If you’re ready to get started on your property rehab, and are looking for an educated, trusted lender, Peak Asset Lending has you covered. Contact us, and our team of lending professionals will work with you to find the loan that fits your needs for the rehab project you’ve got planned. We look forward to working with you!