Home Renovation Mortgage Loan – Episode 1

Good morning Joe Rychalsky here from mortgages with jr. of mortgage network solutions and I’m real excited for you to.


Good morning Joe Rychalsky here from
mortgages with jr. of mortgage network solutions and I’m real excited for you
to be here today because we are yet again launching another new video series
called home renovation mortgage loans and understanding that process so if
you’re a buyer looking for a home or if you’re a realtor this video series is
unlike anything else that’s out there right now and it’s absolutely critical
for you to watch this video series we’re going to take you along the process of
understanding the home renovation mortgage loan process and breaking it
down for you step-by-step so you can understand it because what I believe is
there’s a lot of miscommunication and misinformation out there on how the
process works and a lot of people seem to shy away from it and I firmly believe
I’m an expert out there in this I’ve done this enough times where I
understand what the process is where common breakdowns occur and how to get
these loans across the goal-line so again if you’re a buyer out there
looking for a home that you might see and say you know this isn’t for us it
needs a lot of work home renovation loan might work for you
and if you’re a realtor not understand the process come with me as your expert
and I will help you understand this process and my company mortgage network
solutions does this all the time this is one of our specialty products that we
have so guess what episode 1 is here let’s get started by understanding the
process so everybody welcome to the first episode of the home renovation
mortgage loan vlog I think this is gonna be really cool I was a saying in the
intro got Brandon Baker here he’s a home renovations specialist from one of our
favorite lenders Home Point Financial how you doing Brandon, great thank you
for for having me yeah now this is great we’ve been talking about this for a
little while just so many different things happen but I’m excited to really
kick this off and I think this is unique because anybody’s really doing anything
out there and it’s a great way to educate people absolutely the home
renovation process and I think there’s so many misconceptions out there
especially a lot of Realtors they get worried about you know what’s going on
how does it work it’s very involved and and me personally being through it in
numerous times now it has gotten much easier and I think the process appears
yeah I think absolutely right a lot of people have
heard horror stories about it from 10 years ago 15 years ago I mean the
program’s been around I think 203k since late seventies you know it’s been around
for awhile and they were a little bit more intensive at that point but yeah
FHA and Fannie Mae have definitely picked up on how these can help home
buyers and and also people looking to refinance and made it a lot easier than
what it used to be yeah and that’s it’s a great point I think people forget you
bring a great point about refinancing I didn’t even really know that that was
there I just thought originally Kabir’s goes for purchase but it’s
amazing you could do this for refinance and I think refinancing is probably
easier too because they already own the property absolutely it keeps that
contingency down and a little bit of a quicker process since usually your
borrower can start looking for contractors a little bit quicker you
know I can do with their wanting to do with their current living space right
now right exactly so let’s break it down a little bit so what really is a home
renovation loan in the simplest terms like if I’m a realtor and I have no idea
and I’m a home buyer I like a property and I’m just like yeah this is great but
it’s not what I want so what really is a home renovation loan so really for the
purchase side of a home renovation loan is a unique opportunity for that
borrower to not only purchase that home role but also roll in the cost to
renovate that to make that home there it’s to really personalize it you know I
mean there’s so many shows on out there HGTV like the home house hunters
renovation raise like your entire step right there right yeah yeah exactly from
finding finding that home and then purchasing it and at the same time doing
what you want to do with it making it yours I mean so many times you have the
people wanting I don’t like the paint I don’t like the flooring well right
that’s yours to take care of now you can take care of that at the very beginning
when you’re moving in yeah and that’s a great point too and I think the point
you bring up is rolling it into the mortgage that’s what makes it easy I
think that’s one of the biggest misconceptions because right now I just
got a call couple days ago from a bar and the
realtor saying hey you know we found a place we really like it but I’m just
just not sure but I’ve heard you know and seeing you mentioned about home
renovation alone so I paid for the costs outside or do I do this or do that so I
think it’s really good you could just simply roll everything in just like a
regular regular mortgage absolutely and that’s the key thing is it’s just one
mortgage it’s not multiple mortgages there’s not multiple closings right it’s
one it’s one mortgage you closed with the terms and honestly they’re
considered conforming loans right the credit wise it’s the same conditions
that you have on a standard conventional or a standard FHA there’s real no
difference there’s no real overlays for the renovation fees you’re just adding
on your your bid your contract or bid and getting that in so yeah I kind of
yeah and I agree it’s and what I’ve kind of done with Realtors you just broke it
down said you know cut hold my Adam say look this is your normal loan standard
30 year loan and you have this piece you’re just kind of plugging in and over
here and that’s really all it is is taking a contractor piece and renovation
piece plugging in and it just fits you know very very nicely and it just just
goes very very smooth you’re exactly right the only difference between a
renovation loan and a non renovation loan is just that that renovation piece
that continent and one extra step so yeah exactly so if I’m a let’s say a
buyer’s agent you know we’re looking at properties what would you say some of
the key benefits right away or just doing a renter renovation loan obviously
well for the for if you’re a buyer’s agent you don’t get paid for each time
that you take a potential client to the new house you can be spending hours 40
different times that you’re taking to a different and nowadays people have so
extensive of a list on what they’re looking for for a house well for a
buyer’s agent that makes it that much easier really you just want to talk to
your client say okay where do you want to live
what’s that street you want to live at and even though in a turnkey home they
might be priced out or if there’s a lack of inventory right well now you get a
house that needs a little bit TLC it’s more of a blank canvas for them
so as a buyers realtor you’re gonna take them to the house in the neighborhood
that they want to move into and say sky’s the limit
what do you want done with it yeah it might be outdated now but don’t even
look at that because we’re gonna be looking at what you want done to it
right so it cuts down on those numbers of visits that that amount of time and
as an agent time is money you know you have multiple clients that you’re trying
to assist and in purchasing a home so if you’re able to cut down even a couple
visits that’s more visits and that you can put towards another client so right
that’s huge time is money and I think to the inventory piece right now it’s been
very very tough and if I had so many bars come in saying well I just haven’t
found a place and the first thing I do is say to them hey you know have you
thought about a home renovation mortgage loan in a place that you might like but
it’s not where it is and like you said look at it as a blank canvas and that
way you can kind of make your own and when you start talking to them about
that showing them the benefit it’s it’s huge and yeah yeah absolutely and again
like we just said before the client walks into a home with the buyer that I
really don’t like the color I don’t really like the flooring I don’t like
carpet on what tile well there’s your renovation loan right
there as the buyer’s agent you just push them into and then we have loan officers
such as yourself that’s knowledgeable about this product so it just makes that
great team that dream team is we like to keep it yeah they you know and so it
just makes it that much it’s an easy transition that’s they that people might
not have thought about yeah I agree it just very very smooth
and to your point to for for the buyer’s agent you know you’re moving properties
you know you’re getting the deal done for somebody and you’re just making the
marketplace move which is which is good absolutely so thinking from the the
seller agent standpoint because a lot of sellers agents you know might not think
this way they might just say hey I just want to put this property on the market
let’s just let’s just get it going I want to get out but what are the
benefits for a sellers agent and then also to if I’m a sellers agent you know
listing this out there were some do’s and don’ts you know so they don’t put
something out there to make it not work yeah well for a listing agent somebody
you really kind of want to avoid terms such as handyman special
or investor peace because when you’re listing that home a buyer’s agent is
going to be looking at this list of homes and they might just overlook this
so you’re kinda as a listing agent when you put those terms you’re kind of
limiting the number of looks that you might get from a standard from a buyer’s
agent so you want to kind of avoid that and really focus on the positive of that
home that that has to offer the location the amenities you know don’t don’t focus
on the looks so much of the home because with the renovation loan that can all
change that’s temporary so focus more on the benefits of that home close to a
school a neighborhood the amenities again you know so focus more on that
point stay away from negative terms that as is handyman special and and focus on
the positives so and there’s even software out there I’ve seen a lot of
agents that are getting more used to this program there’s punch it is a
software there’s a point where you can actually take a picture of the home and
kind of work up a little this is what the home could be look look like you
know with that software you’ve seen it on the HGTV shows that’s what like
property brothers you had mentioned that’s programs that they use right you
can go ahead and set it up to get that to get the person thinking that listing
agent be like yeah it looks like horrible home right now but look what
you can turn into it so it’s you know just stay ahead of the game be that that
next level hm you know so that’s a great point you
know just I think the key is it’s think of it as a blank canvas you know this is
an opportunity make a property that you like it has a lot of charm for you and
then turn it into your dream really by doing the renovation and doing the
things that you need to do to to get it done whether it’s you know let’s say
paint carpet or maybe it’s a little bit more extensive you know doing some
things and the nice thing is we’re going to get into all that in this this video
series this is just really the start my paperwork here for everybody see but we
worked up about seven different episodes for this thing and I think this is
really a great start giving people a little bit
– what a renovation loan is and I’m I’m from from a loan officer over the years
they’ve gotten much easier and with you guys we just closed one of my borrowers
loans I think it was like 19 days or something we had it all
I’ll send then that was a refinance and one of the purchases was done in about
30 31 days so it’s it’s going for very very smooth and it’s it’s great process
yeah it’s like I said at the beginning it’s a different world than what it used
to be on these renovation loans they try to make it as easy as possible and sky’s
the limit and like you mentioned it doesn’t have to be some out of the park
renovation it could be something as easy as painting and carpet you know people
don’t have a lot of time they might go into a home saying oh yeah I’ll do this
I’ll do that here you are five years later living in that house sitting with
the same wallpaper you know exactly just get it over you’re
building it in that one loan so exactly well it’s just great well that is all
the time we have for episode 1 so thank you all for watching Brandon thank you
so much for for joining us here in the first episode this is going to be a lot
of fun let’s plan the next episodes

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