Finding the perfect home just got a whole lot easier
April 13, 2013 | Posted by: Jay Meakin
Mortgage Options – Case study #1
What is a Purchase Plus Improvements mortgage?
One of my missions as a mortgage professional is to educate my customer about options and strategies to help meet their goals. Being able to identify opportunities is a matter of knowledge and experience.
Case in point – Customer looking for a home with basement developed.
Current inventory levels are low, therefore limiting choices. Buyer’s Realtor knew that Purchase Plus Improvements mortgage could allow customer to turn that “almost perfect” home into a “perfect home”. He opened the discussion up with customer and they agreed this would work for them.
Expanded search resulted in finding a home for sale that was perfect except basement was only framed. No plumbing, electrical or drywall had been done. Vendor had done plan and even got a quotation, but did not complete the work. Buyer’s realtor was able to obtain quote from original contractor. I submitted deal with improvements $30,000 on a $500k purchase price. Approval in 48 hours. Result: Firm Sale !
Buyer has 120 days from possession date to complete work. Contractor paid by solicitor upon satisfactory inspection by licensed appraiser. Improvements are built-in to mortgage at a nice low rate and comfortable repayment terms. Realtor gets paid at closing, just like any other deal.