4 Ways 203k Consultancy Can Make Your House a Home

People can be interested in fixer-upper homes for a variety of reasons. Maybe the price tag is what interested you, or maybe you looked inside and all you could see was potential. No matter the reason for your purchase, a fixer-upper needs that little bit of extra love, not just to make it your home, but often to make it livable. If you’re looking to secure a lower-interest 203k loan, then a home inspector should be considered an invaluable member of your team. If you’re still not sure why 203k consultancy is right for you, read on to discover some of the things that your consultant can do for you.

Inspection

As the title suggests, a 203k consultant’s primary job is to inspect the home before purchase. The inspection lasts between 2-4 hours and includes structural, electrical, plumbing, gutters, driveways, and an examination of doors and windows. Your consultant will then discuss the minimum repairs needed to bring the home to within HUD guidelines, as well as discussing the renovations you’d like to make from there.

Cost Analysis

In addition to performing the inspection itself, your consultant is responsible for making informed estimates of costs related to your repairs. In addition to materials and labor, the inspector can make valuable estimations about appropriate contingency funds in case your projects go over budget (which they often do)! One thing that’s important to discuss when negotiating the terms of your 203k consultancy is whether it’s possible to roll your consultant’s fees into the loan itself, allowing you to consolidate your payments and make sure that everything is taken care of.

Repair Inspection

A consultant’s relationship with homebuyers doesn’t end when the loan is approved, however. One of the most valuable services a home inspector provides is followup inspections on completion of the tasks. Because consultants are most often home inspectors, contractors, or architects who go through the process of becoming HUD-approved, they have the skills necessary to advocate for you after your repairs have been completed. Which leads to our final point…

Communication With Lender

One of the greatest tools 203k consultancy can provide homeowners is the peace of mind in knowing that the consultant is in contact with the lender. Once repairs are completed, as well as the necessary second-round inspections, your consultant will notify the lender that standards have been met, allowing repair funds to be released from escrow and your contractors to get paid. For major structural renovations, this process of communication and release of funds can happen several times before the final inspection and payment, ensuring that your consultant’s advocacy helps you throughout the entire process.

203k loans are a vital part of the home-buying process because they allow homeowners to take properties that lenders might not otherwise take a chance on and beautify the community while making a house a home. With the help of 203k consultancy and a vision, you’re one step closer to realizing your dream home. Do you have questions about how to choose the best consultant for your needs, or things you wish you’d known before you started looking for your dream home? Let us know in the comments below.