Buying in a Seller's Market can be tough. So few homes for too many Buyers. The 'perfect' home can be extremely difficult to find. Mortgagors understand this. Now you can buy and do renovations to make the house your perfect home and have the funds added into your mortgage!
If you intend to buy a home that needs some immediate upgrades, the Purchase Plus Improvement Program may be the answer. A qualified mortgage consultant can guide you through the process:
- Step 1: Mortgage pre-approval-- Arranging a pre-approved mortgage not only protects you if interest rates increase, it also gives you a
clear price range for your new home. At least a five-per-cent down payment is required for a PPIP mortgage.
- Step 2: Obtain cost estimates for upgrades-- Once you have found a home, you need to get written quotes from licensed contractors on the planned renovations.
- Step 3: Mortgage application--For example, with five-per-cent down, your mortgage consultant would apply to a lender for whatever's lowest: 95 per cent of the purchase price plus 95 per cent of the cost to finish the renovations, or 95 per cent of the "as improved" market value, determined by the institution which insures the mortgage after the renovations.
- Step 4: Finalize purchase--Your realtor and mortgage consultant will walk you through this part of the process. The funds for renovations will be sent to your lawyer in trust when the mortgage closes.
- Step 5: Complete upgrades--The lender will hold back funds for the renovations until the work has been completed and inspected, at which time the contractor can be paid.
Contact me to get started on 'Making your Home Ownership Fantasy a Reality!'