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A home in a state of disrepair may catch your fancy. However, you will need to secure a mortgage for buying the property and for instituting renovations to make the home habitable. You may go by these guidelines to ease the process of restoration of your new home.
You will have to engage the services of a property inspection firm to survey the home. Lenders will want to see the assessment before they decide on the loan amount. If your property is inhabitable, in spite of its neglected condition, a lender should be willing to disburse 80% to 90% of the current worth of the home. You will need to put down a deposit of 10% to 15% towards the value of the home, if you plan to use the property as your personal residence. The lender may not release the total mortgage amount right away. You will need to institute the essential repairs like rewiring, roof repairs and other services recommended in the inspection report. The lender will order another property inspection and will release the remaining funds, if the home inspection report meets his approval.
If the property is not habitable and needs a major overhaul, the lender may offer about 60% of the worth of the property in its current state. You will need to put a substantial sum for the deposit and may have to resort to personal loans. It is important to start renovation work on the home. The lender makes available the remaining funds in several stages. You will have to arrange for repeated inspections of the property for discharge of additional funds.
You may consider the option of taking the services of a specialist lender. A specialist lender offers funds to niche groups. If your building is too unsafe to be liveable, a specialist lender may bail you out and offer up to 90% of the home value. He will agree to advance payments but will charge a high rate.
Once the renovation projects are complete, you can look for refinancing options. A newly renovated property can fetch a mortgage product with little or no deposit and a low interest rate. The funds available on refinancing can help to pay off your personal loans and other expenses. It is crucial to study a wide selection of choices accessible in the market.