Renovation Loans: Buy a House, Make It a Home

Why Renovate?

Whether you’re bored with your abode or want to increase its value with home improvements, remodeling can not only renew your nest interest, it can also make every one of your rooms more functional. If you’re in need of a change, here are 5 reasons to remodel your home:

1. It's Often Cheaper Than Moving

Extending, re-configuring the layout and updating your current property could essentially provide everything that a new build property could offer at a much lower cost.

2. Add Value to Your Home

Did you know that a minor kitchen renovation can add an average of $15K to your home value? A major kitchen renovation adds about $40K to the resale value!

3. Make It Your Home

Customize your home to meet your needs and desires. Renovating simply makes more sense! A kitchen remodel, or a bathroom renovation makes your home a more enjoyable place to live and are a few of the features sought by today’s home buyers.

4. Cost Efficiency

One major trend today is making your home more eco-friendly. Adding solar roof tiles, for example, is not only good for the environment but also good for your wallet.

5. Earn While You Learn

Potential buyers will compare your home to those being newly built; therefore, you’ll want to look at the design trends and amenities being built into new homes.

What are renovation loans?

Considering a distressed property, fixer-upper, or a home in need of some repairs? Homes that need a little work or updating can often be a great bargain turned investment, but some potential buyers shy away from these deals, afraid they can’t afford an out-of-pocket expense for renovations.

Renovation loans allow for financing of the purchase price as well as the cost of repairing or renovating several elements of the home in one mortgage loan. From small repairs to large ones, there are many options to fit your specific needs.

Benefits of renovation loans

  • Take out one loan to both purchase and renovate a home, also available for refinancing
  • Low mortgage rates and low down payment requirements for qualified borrowers
  • Potential to earn equity quickly by purchasing a home below market value and repairing or remodeling
  • These loans facilitate the improvement of distressed properties, which contribute to the betterment of neighborhoods and communities
  • Renovate a property that is above the conforming loan limit

Not every renovation has to be a large project and take up a lot of time. Simple renovations can make a big impact!

Larger Projects

Kitchen Renovations

According to the 2017 U.S. Houzz Kitchen Trends Study, increasing family time, home cooking and entertaining are the top three reasons for kitchen renovations. We couldn’t agree more! Whether it’s used for baking cakes with the children, preparing a family meal, snacking on hors d’euvres with friends, a kitchen is a very important room in your house.

While contemporary is the most popular style across all age groups, millennial homeowners (25-34) are more likely to opt fo modern or farmhouse kitchens than older homeowners (35+), while Baby Boomers (55+) are more likely to prefer a traditional style. Millennial homeowners are also more likely to install kitchen islands.

According to the 2016 Houzz US Kitchen Study, 43% of homeowners could not stand their old kitchen and opted for a kitchen renovation.

Counter-tops, back splash and sinks are the three most popular kitchen features that undergo upgrading during a kitchen renovation. Most renovation planning for 2017 include white cabinets, grey walls and multicolored countertops. Top countertop materials are granite, quartz and butcher block.

Another interesting find from the study show that one-third of homeowners report leading a healthier lifestyle after a kitchen renovation, from eating more fruits and vegetables to preparing more meals at home. There you go, that’s a fantastic reason to gift yourself a new kitchen!

Countertops, backsplash, and sicks are the three most popular kitchen features that undergo upgrading during a kitchen renovation.

Master Bedroom

The average person spends a third of their time in bed. If you’re spending that much time in a room, it is important to feel comfortable in this space. Your bedroom is the place to look forward to after a long day at work.

According to the 2017 Houzz & Home Study, the average mater bedroom remodel spend is $3,500. To compare, kitchen renovations cost around $28,000.

Some ideas for upgrades include a fresh coat of paint, wood flooring or plush new carpet installation, a California king-size bed with luxurious linen, updated headboards, personalized art work, or something simple like replacing old dresser drawer handles.

So what are you waiting for? This weekend can provide the perfect opportunity to transform your bedroom into a calm and inviting haven.

FHA Repair Escrow 203(b): For purchasing a home directly from HUD that needs cosmetic repairs not to exceed $35,000

Finished Basement

Have you been using the basement primarily for storage? You’ve got the extra space – why not turn it into something special? A place to escape every day noise, watch your favorite sports, challenge your friends to a round of pool or host family and friends.

Why not install a wine cellar or a pub? Some other ideas include transforming the basement into a recreation room, adding a bedroom and bathroom for guests or your teenager, or turning the space into your own fitness studio, fully equipped with machines and sauna.

Whatever you decide to do, renovating your basement is guaranteed to add value to your home. A finished basement not only adds extra square footage to enjoy, it boots the resale value.

A finished basement not only adds extra square footage to enjoy, it boosts the resale value.

FHA Standard 203(k) Rehabilitation Loan: For homes in need of extensive repair or renovation totaling more than $35,000, possibly including structural repair

Smaller Projects

  • Replacement doors/windows: Replacing your windows and doors may seem like an unnecessary and expensive upgrade; however, by installing modern, energy efficient products it will prove to be more cost effective in the long run.
  • Porch, patio, or deck repair: It's time to open up your outdoor space and make sure it is safe for family and guests.
  • Painting: A fresh coat of paint is one of the easiest and least expensive ways to freshen and revitalize a room in your house.

FHA Limited 203(k) Rehabilitation Loan: For homes in need of extensive repair or renovation totaling more than $35,000, possibly including structural repair

Get started today!

Have Questions? We're here to help! Call us today at 801.903.2993 or email us at admin@myutahmortgage.com

We are here to answer any questions you may have about Renovation Loans!

We are here to answer any questions you may have about Renovation Loans!

8 Tips for Moving with Pets

Moving to a new home is an exciting experience. It can also be stressful for both you and any pets you may have. Below are some ideas to help you and your animals have a stress free move.

1. Acclimate

If the pet is now used to being in a carrier, begin to introduce the carrier as a regular routine so that when the move comes, the transition will not be as drastic. Similarly, if a dog is not used to car travel, begin taking short trips to introduce the experience.

2. Safety

Check with your veterinarian if your pet is healthy enough for travel, especially if they have to be shipped by air. High altitudes can have an impact on pets just as much as humans.

3. Paperwork

Make sure to bring all adoption and health certificates with you. This is especially important with traveling overseas or across state lines. Many states require one, and patrolmen have the right to ask for a health certificate. A ticket could be issued if one is not presented.

4. Stops

Should you need to stop at a hotel, take special care to research pet friendly locations. As new places can bring added stress, keep a close eye on your companion, as they may seek out places to hide.

5. Perimeter Check

Check the new house for hazards. Look for holes in the wall, small spaces, open windows, and small, loose items

6. Tags

Remember to change the tags on your pet to reflect the new address, in case they do get out.

7. Arriving

Integrate your pet into a single room, and preferably give them something familiar to play with. A blanket, toy, etc.

8. Love

Show them extra attention and care through the moving process, as the move can be a hectic, and stressful time for your animal. Knowing your presence will help them adjust to their new home a lot quicker.

9 Great House Hunting Tips

Buying a home is one of the biggest investments you will ever make. Below are some tips to assist you in making your best buying decision.

1. Take lots of pictures

Take lots of pictures of both, the interior, and exterior of the home (especially any special features you want to remember). This will make it much easier when you are comparing homes later and making a final deecision.

2. Know your budget

Before looking at homes or applying for a mortgage you need to know home much home you can comfortably afford. When calculating, make sure you research all the involved costs of buying such as the down payment, insurance, property taxes, closing costs and money for any additional expenses.

3. Bring along a friend

Bring along a friend or family member. They can offer a second opinion, another set of eyes, and lend their expertise.

4. Think about proximity

Think about proximity to work, school or other locations you frequent, to make sure your new home is in a conveint area.

5. Choose a neighborhood

Think about the amenities and characteristics you need your new community to have. Once you choose an area, get all the statistical information about the neighborhood such as local schools, crime stats and access to local shops.

6. Use a Realtor

Getting help from a professional agent can alleviate stress from finding a home. They will offer their expertise and make finding your new home a quicker and more efficient process. Get recommendations from friends and family or your Utah Mortgage Professional to find an experienced agent in your area.

7. Look for hidden problems

Look for hidden problems and possible defects that the seller hasn’t disclosed. Is there a rug or piece of furniture located in an odd space? There is a good possibility that its hiding a problem with a floor or wall. Check all areas of the home as thoroughly as possible during your home inspection to avoid any suprises after closing.

8. Needs Vs Wants

Prioritize your list of wants and needs and communicate these items to your Realtor prior to viewing any homes.

9. Know all additional costs

Know all additional costs such as home inspection fees, survey costs, taxes, HOA / Condo fees and property taxes. Ensuring you do this allows you to avoid any surprising costs associated with the purchase of your new home.

6 Step to Buying a Home

1. Prequalify for a loan

With the help of your Mortgage Loan Originator, you decide on a loan program that works for you. You will be sent a full disclosure packet, which contains an application and a list of required documents that need to be obtained. You’ll fill out the application, gather the materials, and then submit.

 

Alternatively you can go online to our website and fill out a loan application and submit documents through our secure system.

2. Find your home & submit your application

After submittal, your Mortgage Loan Originator and Loan Processor will be your point of contact and will be throughout the process with you. These people will review your information and ask you for anything additional that’s necessary to complete your application.

3. Loan Processing

Once everything is in order, the Loan Processor will submit your information to a loan Underwriter who will perform a meticulous examination of your documents and information. It’s possible that the Underwriter will request additional information on some unverified items. This part of the process may require some back and forth between the Underwriter and your Loan Processor to ensure that all government and lender guidelines are met.

4. Schedule your Closing

After all guidelines have been met and all information has been verified, your file will be issued a Clear to Close (CTC). Once this is issued, your loan processor or Mortgage Loan Originator can schedule the closing and the signing of the final documents.

5. Closing on your home

At the closing table, your closing agent will thoroughly review all details of the transaction, the closing costs will be due, and you will sign several pages of documents. The Closing process can be stressful, but don’t let it detract from your excitement that the mortgage process is almost complete and the house you want can now be yours.

6. Congratulations you're a homeowner!