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Does the Edmonton Area House You Want to Buy Need an Immediate Upgrade?
July 13, 2021 | Posted by: Yvonne Wilchewski - Edmonton and Alberta Mortgage Broker
Purchase Plus Improvements Mortgage
Does the House You Want to Buy Need an Immediate Upgrade?
Not every home you would like to purchase is move-in ready. Sometimes there is a necessary upgrade needed before you commit to buying it. With a Purchase Plus Improvement Mortgage, you can buy your home - plus add in the costs of the renovations into your mortgage.
What is a Purchase Plus Improvements mortgage?
This program allows you to borrow the cost of the renovations (up to a certain percentage of the purchase price) and add the renovation costs to the initial home price, rolling it all into one mortgage. This type of mortgage comes with a few extra requirements, such as providing quotes for the work that needs to be completed upfront. The lender will review and approve the improvements. The improvements requested need to add value to the home. Once you take possession of your new home, you can start the upgrades immediately.
How it works, and How I can help you
Step 1: When you have found a property, determine what renovations need to be done and a obtain a rough idea of how much the renovations will cost.
Step 2: I will get you approved based on the house price 'as-is.' At that point, you'll need to get in touch with the appropriate contractors and get firm price quotes for the work that needs to be done. Make sure the quotes specifically state the work that is to be completed (in some cases, the work will need to be done by a licensed contractor).
Step 3: I will then have your initial mortgage approval re-approved to include the cost of renovations, as per the quotes, and help you complete your mortgage details.
Step 4: When you take possession of your new home, you can immediately start the renovations that were agreed upon.
Step 5: Once the work has been completed, a representative is sent out to verify that the renovations were completed properly and as required.
Step 6: You'll receive the money to pay the contractors - your lawyer will be instructed by the lender to release the money for the specified renovations.
Step 7: With the upgrades done, and all the mortgage details taken care of, you can fully enjoy your new home with renovations completed knowing those renovation costs was added to the mortgage.
Ask me about the Purchase Plus Improvement Mortgage!
Questions:
Email me at yvonne@mymortgageline.ca
Call 780 918 2179
