Home renovations can be fun, but expensive. So Designing Spaces looked for ideas on how
to finance that new kitchen or bathroom. Watch this.
“There’s no place like home” isn’t just a famous line from a movie. It’s a mantra we
all repeat every time we come home from a long day of work or celebrate a special moment.
It’s where we share our memories. But, what if home sweet home need a little sprucing.
That’s when a renovation loan comes into play. Joining me today is Ryan Kiefer, home loan
officer, from PrimeLending. Ryan, it’s so good to have you here today.
Well, thanks for having me. I’m happy to be here.
You know, PrimeLending has made many visits to Designing Spaces, so I feel like I know
your mortgage company very well. But, I’m very excited to learn about the renovation
loans. Well, it’s a great product, especially in
the current market. It’s a little bit of a tight real estate market right now. Maybe
you can’t find exactly the home you’re looking for, so you can identify maybe that fixer-upper,
borrow money to handle it that way, or maybe purchase in a neighborhood that’s a little
more expensive than you otherwise would’ve thought of.
Is it a special kind of mortgage? It is a special kind of loan. It’s a regular
mortgage loan in the sense that it’s one application, one approval process, one closing, one mortgage
Yes, so it’s nice and easy that way. It’s a little bit special different in that we’re
going to escrow or set up money post-closing for you to handle the repairs of the property.
So, let’s say I want to redo my entire kitchen. How does that work?
That’s a possibility. We see a lot of that. We see a lot of redoing of kitchens, you know,
master bathroom updates and that type of thing,you know, swimming pools, what-have-you. But,
we can handle all those sorts of things. (music).
Okay, so how does it work? Good question. How it works exactly is you’re
going to identify exactly the type of work that you want to do upfront. Identify a contractor,
of course, that you’d like to do the work, and then we will handle the due diligence
on the back end of getting the contractor approved, making sure they have proper licensing,
bonded for the local jurisdiction. You do all that?
We’ll handle all of that for you. And then we’ll set the money aside in that escrow account,
and you have anywhere from 30 days up to 180 days in some cases to get the work completed
after you close upfront. Then, we’ll send an inspector back out to make sure the property
— you know, that the work has been done up to standard. Then, we’ll then release the
funds to pay the contractor at that point. And, then also make sure that the property
is going to appraise high enough on what we call a “subject two” or “future value” of
the home to where the property is going to be at worth, at least the money that we’re
going to put into it. So, we’re not lending too much and you’re not getting in over your
head. It’s to protect you and us. Okay. Good point. I wouldn’t have thought
of that. Okay. I have to ask you about your customer service, because you guys really
go over and beyond when it comes to customer service. So, let’s talk a little bit about
that. Yeah, we do, indeed. I have Mo here behind
me. Which — Mo, the Buffalo. It’s short for Momentum. The company has had great momentum
for a number of years. We are annually a top ten purchase lender in the country. We strive
for excellence in that area especially. But, also, we do have local operations with processing
and underwriting, which is great local decision making for our clients. We keep them up-to-date
at least weekly with status updates on their loans, really walk them through the process.
The communication is key. The communication key, and most often we close
in 30 days or less, which is huge in the current environment.
Absolutely. Just really strive to be transparent and honest
with the mortgage process overall. Which is a very nice refreshing trait. So,
thank you so much for coming here today, really sharing your expertise with us. We really
appreciate it. Thanks for having me.
Thank you. Well, if you’ve missed any of what we covered here today, you can head over to
our website at designingspaces.tv. You can also visit us on facebook and twitter. Thanks
for joining us. (music).
You can visit these websites to learn more about the participants on this edition of
Designing Spaces. (music).