The 203k Mortgage Program
When a lender suggests to their client that the services of a 203k Consultant is necessary, it becomes important that the client understands what type of service they are seeking from that 203k Consultant. In this Redi-Tech Blog, we'll offer some information about what you should know before calling the 203k Consultant.
Let's talk reports! In order for you to proceed in the 203k program, here are the type of reports that will need to be submitted.
The Feasibility Analysis - This report requires the consultant to visit the property and provide the client with a quick walk though home inspection, a rough cost estimate and maybe a scheduling time frame. The 203k Consultant will also take into account whether the project itself is viable, when all things are considered.
Home Inspection Report – This report is provided by a licensed home inspector who will perform a thorough inspection of all systems in the home (structural, electrical, plumbing etc.). In order for the 203k Consultant to have a broad picture of what potential repairs need to be done, the buyer or seller should have this report in their possession when speaking with the consultant.
The Work Write-Up - This is the grand daddy of all reports! The work write-up represents a comprehensive report based on accurate material and labor cost (not an rough estimate) within specific regional location. Once the client receives the work write-up, contractor bids can now be solicited.
Understanding the type of reports the client needs, helps the 203k Consultant quote the correct fee for each report and lets the consultant know where you are in the 203k process. Otherwise, the 203k Consultant might quote a Work Write-Up fee that is much higher and based on the total construction cost. Whereas, the Feasibility Analysis report is based on the consultants flat rate. By understanding what is needed, the consultant does not lose a potential client based on a quote for the wrong report (this happens more often than you might think). However, this will help ensure that the client gets the correct report when it’s needed and at the right price.
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