When we interviewed homeowner Gordon T. about his recent home renovation project, he said that having the right contractor and lender by your side can make all the difference. We caught up with Stephen C., Gordon’s contractor, to get his take on possible challenges many homeowners may face when financing home renovations.
Typically, Stephen handles city and government funded projects building new homes free of charge for those in need. However, when he was referred to a new project by Tamela T., Equitable Housing Director at Freddie-Mac Single-Family and Gordon T’s sister-in-law, he couldn’t pass up the opportunity. With the world being such a small place, it turned out Stephen also knew the PrimeLending loan officer on the project because their sons played on the same basketball team. All signs pointed to a smooth renovation project.
COMMUNICATION EXPEDITES CHANGES
At the start of the renovation, COVID was still throwing wrenches into construction projects across the country and this one was no different. Some pandemic-induced barriers included supply chain issues and production costs that could make the bidding process tricky, “The last thing you want to have to do is ask your client for more money,” Stephen said.
He stressed planning was, and still is, key as COVID nearly tripled the time it took to receive orders, even on something as simple as windows, and has remained a struggle. The decreased supply and increased shipping issues made matters more complicated, and even shortened the lifespan of many product quotes. Quotes that were good for 90 days before the pandemic were now only good for seven days which meant prices could change mid-project. Stephen said, “The all-hands communication with PrimeLending made things easier. The loan officer and client were receptive and understanding when changes needed to happen.”
THE RIGHT LOAN CAN KEEP YOU ON TIME AND ON BUDGET
When it comes to finishing a project on time, and on budget, cash is king. A renovation loan can help fund a project, but it takes an experienced disbursement specialist to make sure things run smoothly. Late disbursement payments can put a strain on a contractor’s payroll and risks breaking their vendor payment terms. “The easy, no-nonsense disbursement process with PrimeLending kept everything running like clockwork,” said Stephen. “It was definitely a top-tier experience.”
By the time the home was appraised at the end of the renovation, Stephen’s work had significantly increased the value of the property. He noted that when clients are looking for a lender and a contractor for their own renovations, they should keep an open mind as supply chains are still working to get back on track. An understanding lender who is proactive could help close with larger contingencies which could help leave room for unforeseen changes.
If you are ready to renovate your home, talk to your local PrimeLending branch to discover your loan options.
