McDonnell Group Practical Guide to Renovation Loans 4.13.18 - Flipbook - Page 12
PROJECT TIMELINE
Your Renovation
Project Timeline
Phase 2
Loan Processing (approximately 30-45 days)
Your Lender will aim to complete renovation loan processing in 30-45 days (for
purchases, does not include time necessary to get offer accepted on a property).
Application >> Approval >> Loan & Appraisal Processing >> Final Approval
Final Loan Documents Signed >> Loan Funds >> Close of Escrow
Escrow disburses funds: loan payoff, renovation funds to draw account, etc
Lenders Draw Department will send a Renovation Welcome Packet with
specific instructions on next steps
Phase 3
Renovation Begins (project completion varies from 2-9 months)
Contractor gets to work immediately securing all city permits required for the
project. Then demolition and cleanup begins, followed by all construction work
scheduled on the Contractor's bid. Depending on the size of the project, the
Contractor can take up to 5 draws after completing equal phases of the job.
Once the work is complete with a final inspection by the HUD Consultant, you'll
be notified of any funds remaining in the draw account, then decide whether to
make additional improvements or apply to the principal balance of your loan.
The Lenders draw department will request a final title update to ensure no liens
have been placed on the property, and will verify that all Contractors and
Sub-Contractors have been paid.
Last but not least, final sign-off on permits and a Certificate of Occupancy
will be issued.
Let's Party! Time to Show
Off Your New Home!
To learn more, call us at 714.559.3696 or visit us
online at www.financemyimprovements.com
12
