You might have noticed that this little garden blog hasn't had much gardening going on...but major things are happening none the less!
A few months ago we looked into the possibility of getting a mortgage on a fixer upper. We are still in the beginning stages of this process, but will be chronicling it here to add to the body of knowledge available for people looking to begin a similar project.
Here's a recap of the timeline so far (2016):
February 15th: We ran mortgage calculators to get an idea of our budget and began casually looking at homes on-line while gathering the information we'd need to apply.
February 18th: Browsing Realtor.com we saw a house in an area of interest that met all of our requirements and contacted a realtor recommended by a friend to set up a visit.
February 23rd: Added a list of several other houses to visit. In the mean time, received pre-approval for a loan through the FHA program.
A few months ago we looked into the possibility of getting a mortgage on a fixer upper. We are still in the beginning stages of this process, but will be chronicling it here to add to the body of knowledge available for people looking to begin a similar project.
Here's a recap of the timeline so far (2016):
February 15th: We ran mortgage calculators to get an idea of our budget and began casually looking at homes on-line while gathering the information we'd need to apply.
February 18th: Browsing Realtor.com we saw a house in an area of interest that met all of our requirements and contacted a realtor recommended by a friend to set up a visit.
February 23rd: Added a list of several other houses to visit. In the mean time, received pre-approval for a loan through the FHA program.
February 29th: Visited several houses and found THE PERFECT HOUSE in THE PERFECT LOCATION but due to the condition it was clear that it would not pass an FHA inspection.
March 1st: After referral to a local loan office that specializes in working with the FHA 203k program, resubmitted our information and were able to get a pre-approval letter for the home. It was listed at $40k, but with several cash offers on the table we were advised to offer $45k with a renovation budget of an additional $35k (rough estimate).
March 3rd: Deadline for offers was noon and our realtor submitted at 9am. We also included a $1000 check for "hand-money" at the recommendation of our realtor. This money helps show you are serious about your offer, and will go towards our other expenses and closing costs.
March 4th: OUR OFFER WAS ACCEPTED! We forwarded the acceptance to our loan officer and continued to gather needed paperwork. We also dropped off the hand-money check that had just been scanned and e-mailed for offer inclusion previously.
March 6th: Realtor sent over the disclosures which we were able to electronically sign.
March 8th: We are now scheduled for our assessment of the house with a HUD certified 203k consultant tomorrow (March 9th) at 1:30pm. He will make a list of all the things that need to be fixed in order for the house to be FHA compliant, and a rough estimate of the funds that will require. From there we can decide how to move forward. I will also be able to take photographs.
Wish us luck!
March 1st: After referral to a local loan office that specializes in working with the FHA 203k program, resubmitted our information and were able to get a pre-approval letter for the home. It was listed at $40k, but with several cash offers on the table we were advised to offer $45k with a renovation budget of an additional $35k (rough estimate).
March 3rd: Deadline for offers was noon and our realtor submitted at 9am. We also included a $1000 check for "hand-money" at the recommendation of our realtor. This money helps show you are serious about your offer, and will go towards our other expenses and closing costs.
March 4th: OUR OFFER WAS ACCEPTED! We forwarded the acceptance to our loan officer and continued to gather needed paperwork. We also dropped off the hand-money check that had just been scanned and e-mailed for offer inclusion previously.
March 6th: Realtor sent over the disclosures which we were able to electronically sign.
March 8th: We are now scheduled for our assessment of the house with a HUD certified 203k consultant tomorrow (March 9th) at 1:30pm. He will make a list of all the things that need to be fixed in order for the house to be FHA compliant, and a rough estimate of the funds that will require. From there we can decide how to move forward. I will also be able to take photographs.
Wish us luck!
