Comments on: How To Request Financing For Renovation http://www.thefinancialblogger.com/how-to-request-financing-for-renovation/ This is where your finance takes place Thu, 09 Feb 2012 12:42:32 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: The Financial Blogger | Final Thoughts on Home Renovation http://www.thefinancialblogger.com/how-to-request-financing-for-renovation/comment-page-1/#comment-4348 The Financial Blogger | Final Thoughts on Home Renovation Mon, 05 Jan 2009 10:01:34 +0000 http://www.thefinancialblogger.com/?p=812#comment-4348 [...] in November, I started some home renovations in order to have a daycare at home. At the same time, I spent more money and finish a bathroom with [...] [...] in November, I started some home renovations in order to have a daycare at home. At the same time, I spent more money and finish a bathroom with [...]

]]> By: Richard http://www.thefinancialblogger.com/how-to-request-financing-for-renovation/comment-page-1/#comment-3443 Richard Tue, 30 Sep 2008 03:20:45 +0000 http://www.thefinancialblogger.com/?p=812#comment-3443 True. I remember several years back we were going to get a loan for 200% LTV with no down payment. That was before I knew what I know now...and being laid off. Live and learn. Recently tried going through Home Marketing Services (a Texas lender that specializes in helping people fix their credit and afford a loan), they offered a Sub Prime mortgage AFTER we get our scores up by getting MORE debt than we already had. Needless to say, we politely said no and never talked to them again. This was actually right after the mortgage down turn started. True. I remember several years back we were going to get a loan for 200% LTV with no down payment.

That was before I knew what I know now…and being laid off.

Live and learn.

Recently tried going through Home Marketing Services (a Texas lender that specializes in helping people fix their credit and afford a loan), they offered a Sub Prime mortgage AFTER we get our scores up by getting MORE debt than we already had. Needless to say, we politely said no and never talked to them again. This was actually right after the mortgage down turn started.

]]> By: The Financial Blogger http://www.thefinancialblogger.com/how-to-request-financing-for-renovation/comment-page-1/#comment-3442 The Financial Blogger Tue, 30 Sep 2008 01:44:54 +0000 http://www.thefinancialblogger.com/?p=812#comment-3442 There is still a difference between requesting 10K - 15K for renovation and thinking that your house value will increase by 25% in the upcoming months just be doing nothing. I heard that some banks were financing up to 125% of the property value simply thinking it would go higher up in the next 2 years. It would be like borrowing 70K to renovate your property. On the other side, you won't get financing until you do the renovation. Therefore, you better be sure that your house will increase in value ;-) There is still a difference between requesting 10K – 15K for renovation and thinking that your house value will increase by 25% in the upcoming months just be doing nothing. I heard that some banks were financing up to 125% of the property value simply thinking it would go higher up in the next 2 years. It would be like borrowing 70K to renovate your property. On the other side, you won’t get financing until you do the renovation. Therefore, you better be sure that your house will increase in value ;-)

]]> By: Richard http://www.thefinancialblogger.com/how-to-request-financing-for-renovation/comment-page-1/#comment-3441 Richard Tue, 30 Sep 2008 01:05:18 +0000 http://www.thefinancialblogger.com/?p=812#comment-3441 True. But if you watch the beggining of 'Maxed Out' (It is on Google Video) there is a real estate agent that admits that because the bank is loaning her the money based on what it would sell for when completed instead of actual value, she would not be able to get it. Also, if they raised the rates, she would have to foreclose (she says couldn't afford, but same difference). In my opinion, if you are going to renovate, do it in manageable stages and with saved money. True. But if you watch the beggining of ‘Maxed Out’ (It is on Google Video) there is a real estate agent that admits that because the bank is loaning her the money based on what it would sell for when completed instead of actual value, she would not be able to get it. Also, if they raised the rates, she would have to foreclose (she says couldn’t afford, but same difference).

In my opinion, if you are going to renovate, do it in manageable stages and with saved money.

]]> By: The Financial Blogger http://www.thefinancialblogger.com/how-to-request-financing-for-renovation/comment-page-1/#comment-3440 The Financial Blogger Tue, 30 Sep 2008 00:14:18 +0000 http://www.thefinancialblogger.com/?p=812#comment-3440 Richard, Traciatim, You are right; I should have mentioned that you must not over estimate the added value to your house and technically calculate less added value than what it will actually cost. Traciatim, you are right saying that you are always best saving than borrowing for renovations. Richard, Enron was also hiding debts through satellite companies that didn't need to be reported in their balance sheet according to the accounting rules back then. Richard, Traciatim,

You are right; I should have mentioned that you must not over estimate the added value to your house and technically calculate less added value than what it will actually cost.

Traciatim, you are right saying that you are always best saving than borrowing for renovations.

Richard, Enron was also hiding debts through satellite companies that didn’t need to be reported in their balance sheet according to the accounting rules back then.

]]> By: Traciatim http://www.thefinancialblogger.com/how-to-request-financing-for-renovation/comment-page-1/#comment-3436 Traciatim Mon, 29 Sep 2008 12:59:39 +0000 http://www.thefinancialblogger.com/?p=812#comment-3436 . . . and when they decide that your house really isn't worth what you declared up front and deny your loan application you'll be sitting with 30,000 on credit cards at 19% interest costing you over 5 grand a year. Why not just start saving instead? . . . and when they decide that your house really isn’t worth what you declared up front and deny your loan application you’ll be sitting with 30,000 on credit cards at 19% interest costing you over 5 grand a year. Why not just start saving instead?

]]> By: Richard http://www.thefinancialblogger.com/how-to-request-financing-for-renovation/comment-page-1/#comment-3434 Richard Mon, 29 Sep 2008 12:29:59 +0000 http://www.thefinancialblogger.com/?p=812#comment-3434 If I remember correctly, this was the same accounting method used by Enron and how some of the mess we are in now got started. Granted in this case, by the time they look at the house the work has been done, but there is no guarantee that the house will be worth what you say it will be. If I remember correctly, this was the same accounting method used by Enron and how some of the mess we are in now got started.

Granted in this case, by the time they look at the house the work has been done, but there is no guarantee that the house will be worth what you say it will be.

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