1. Call or meet with one of our 203(k) Specialists to get pre-approved.
Before you begin to shop for a house, you should obtain a pre-approval letter from Allied Mortgage Group. Some other lenders may not have the experience and skill set to efficiently process and approve your loan request.
To get pre-approved for a loan, you will need to provide information about your debts, income, and assets. We will evaluate your credit profile, assess goals for a down payment, and provide you with an idea of how much you may qualify for and the different loan programs that would work for you.
Once we determine that you qualify for the loan, we will issue you a pre-approval letter indicating the amount you are eligible to borrow. It is important to understand that a pre-approval letter is an estimate of what you are eligible to borrow, not a commitment to lend. A pre-approval letter is subject to an appraisal and certain other documents you will provide.
You will work with your Realtor to do an analysis of the property after the repairs and improvements are completed. Before you spend money, you should understand the equity gain you anticipate for rehabilitating the property.
2. The Seller accepts your purchase contract.
Your Realtor will send the accepted contract to your Loan Officer. Now it is time to meet with your contractor and your Loan Officer to finalize the estimate and amount of work to be done. At this time, various required or desired home inspections will take place such as termite, well/septic, roof and HVAC.
3. Allied issues the commitment to lend
If the loan application is sufficient, a commitment will be issued to all parties stating the terms of the loan
You must finalize your contractor selection. All contractors chosen must provide the required documentation to be accepted for use in the 203k program. We will work with your contractor to complete the package
The seller and Realtors are paid in full at the closing. An escrow account is created for the funds used for the repairs. All Repairs must start within 30 days from the closing of the loan and must be completed with six months.
If you are considering home improvements or construction, now is the time to talk to one of our licensed Loan Officers who specialize in FHA 203k lending.
Give us a call at (877) 448- 2745 to get started or Click Here to email us.