David: “Hi this is David with Alair Homes. We are here today at a new client’s construction site with Bernadette and Veneesh from Xeva Mortgage. We wanted to talk just quickly about the importance of getting your financing right before you start a renovation project. This particular job, the clients came to us and part of the challenge that they had aside from understanding how much the project cost is their financing. They didn’t have their financing structure to start with to include the renovation, so, fortunately, we were able to bring them to you guys and create a solution for them so just tell us what did you have to do to create the financing that these guys needed to be able to do this major renovation to this house they bought?”
Veneesh: “Well actually when we first spoke with the clients we needed to figure out what it was that they wanted to be renovating, what the cost was going to be, what the budget for the individual items were going to be, and then what the design was going to look like. Once we had those three pieces of information and of course their financial information, then it kicks in, and we are able to start our process. From that point on, Bernadette kinda took over the process and took care of the financing.”
Bernadette: “And I’m glad the question about being the right financing because the challenge with the client was they knew when they bought the home that they were going to be needing construction money. Because they knew that the house did not fit exactly their lifestyle so they needed to fix it. However, the financing that they had in place when they first bought this was not the right type of financing. So we had to break that mortgage, the client had to pay a penalty in order to create room for the construction money. So that’s why it’s really important to have the correct financing in place to avoid stress, frustration, and extra costs.”
David: “Yeah. Wow, that’s huge. So having the right mortgage company to start with and the right team to make sure you have the right mortgage so that you don’t have these challenges as you move along.”
Watch Our Other Renovation Tip Videos:
HOW TO FIND A BUILDER YOU CAN TRUST
HOW TO STAY ON A BUDGET WHEN RENOVATING
MORTGAGE TIPS FOR FIRST-TIME HOMEBUYERS
TO BUILD NEW OR TO RENOVATE YOUR HOME?
TWO-PHASE MORTGAGES TO FINANCE YOUR BIG HOME RENOVATION
MORTGAGES TO BUY AND RENOVATE HOMES
MAKE MONEY WITH YOUR HOME RENOVATION
WRONG FINANCING FOR YOUR RENOVATION? HERE’S HOW TO FIX YOUR MORTGAGE