![]() But there are things you can do to help your cause. When it comes to ADU financing, each homeowner is different, so it’s impossible to guarantee that there will only be one round of back-and-forth between you and the underwriter. “You would submit it, the underwriter would say, ‘You’re approved, with these conditions.’ You’d provide those conditions, it would go back to the underwriter a second time, they’d clear it, and then you would move forward with loan doc signing and closing.” “In a perfect world you would only have to do this twice with the underwriter,” says James. They’ll probably ask for several more pieces of information. The underwriter interprets the guidelines of the loan you’re applying for and sees whether your application qualifies. They’ll then pass it on to the underwriter. They’ll review the application and might ask for a few more documents. The loan processor is a middleman between the loan officer and the underwriter. ![]() They will give your application, including these documents, to the loan processor. They’ll ask you for, say, 15 documents relating to your assets, income, and debt. The loan officer serves as the lending institution’s salesperson. There are several people you’ll be providing documents for. Homeowners can find this frustrating because they don’t understand what’s happening behind the scenes. When you’re ready to actually apply for the loan, be prepared to supply multiple rounds of documentation. “You don’t want to meet with architects and contractors and get super excited, and then find out that the way you file your tax returns prohibits you from qualifying for a loan.” Documentation for ADU loans Within 24-48 hours they should be able to tell you whether you’re going to qualify for this loan or not. “Have a lender review your documentation,” says James. With a realistic budget in hand for your ADU financing, you can meet with lenders to get prequalified for a loan. Interest rates, the price of materials, and inflation will also affect the end cost of your loan. Six-month-old estimates may not be accurate anymore. That’s going to stop the loan process in its tracks.”Ī Maxable Site Evaluation will give you a current realistic budget range for your ADU based on your property, location, ADU size, and other elements. “A lot of times people come to us early in the process, they haven’t talked to a Maxable, they may have done some googling and think their ADU will cost 100 grand and it’s 300 grand. The first thing you need to do, says James Carmody, is know your numbers. Depending on the type you choose, you may experience a few more hurdles than if you were applying for a simple home mortgage. Homeowners usually finance their ADUs with a cash-out refi, a renovation loan, or a HELOC, all of which are explained here. But don’t worry-James Carmody of Synergy One Lending in San Diego is an expert in ADU lending and told us exactly how the process works. ADU financing is different from a standard home loan.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |