There are many routes to take on your way to becoming a homeowner. Some people buy their first home just the way they want it. Some make a few improvements. Some take it down to the studs for a complete renovation. The last was the path Gordon T. of Dallas, Texas, chose. Here’s how Gordon transformed the outdated home he inherited into a modern 3-bedroom, 2-car garage home with the help of a PrimeLending renovation loan.
Gordon inherited his home from his mother and was excited that the house he once lived in as a young man would become the first home he owned himself later in life. However, the renovation to make the home comfortable felt like an overwhelming undertaking. You see, his mother had rented out the home for some time and it eventually fell into disrepair, which gave Gordon some hesitations about what to do with it.
He discussed his options with his siblings, talking about whether or not it would just be easier to walk away from the property. As they explored Gordon’s options, he decided to bring the home back to life with a complete renovation. His sister-in-law knew of someone who could help him with financing and put him in touch with a PrimeLending loan officer she knew he could trust.
Once Gordon was connected to his PrimeLending loan officer, the project started to gain some traction. Gordon and his loan officer spent time discussing renovation loan ideas that would fit his budget and needs. In February 2021, they closed on a 12-month construction loan which would help Gordon create the home of his dreams, complete with a tub to relax in at the end of a long day’s work.
The construction loan would make it possible for Gordon to have the older, existing home torn down to rebuild a new one in its place. Once he closed on his construction loan, it was time to put the renovation project in motion. With the help of his loan officer, they found the right contractor for the job. “My loan officer contacted a contractor about the project six months before we even started,” said Gordon.
With a contractor selected and a construction loan to back the project, work could begin. They started with the demolition of the old home which Gordon said got him a bit emotional. “I cried when they demolished it,” said Gordon. “But the contractor told me I’d have tears of joy by the end.”
Having never undertaken a renovation before, Gordon wasn’t sure what to expect. A year after the beginning of the COVID-19 pandemic and on the heels of the 2021 winter storm, there were bound to be some unforeseen challenges. When building materials became scarce and construction costs changed, Gordon could feel the pressure mounting. “Every time I got stressed out about the project,” said Gordon, “my loan officer was there to be a calming voice and reassure me it would be okay.”
In spite of material cost changes and some rain delays, Gordon was impressed by how fast the construction crew worked to complete the home. They made sure to incorporate plastic plumbing that could hold up to any winter freeze. The house was also completed with gas lines so that if the power ever went out, Gordon would still have access to hot water, his oven and fireplace.
By March 2022 construction was complete, including Gordon’s favorite feature, his dream tub. Post-construction, Gordon’s loan officer was able to refinance the newly constructed home into a conventional 30-year fixed-rate mortgage. So, even though there were two phases to Gordon’s home journey, he only ever had to make payments on one loan.
Thinking of renovating your own home? Talk to your local loan officer about how a renovation mortgage could help you too.
