Every borrower can be like a fingerprint - with their own unique set of circumstances, family plan, financials and so forth. We're committed to our clients' long-term success as homeowners and so we take an approach from the start where we spend the time to discuss their dreams and goals. What our clients especially need today is a competitive edge so we fully underwrite their pre-approvals and put them in a position to compete with multiple offers and to close more quickly than a standard pre-approved borrower. We also have strategies in place which we discuss with our clients ahead of time for instances which may come up such as low appraisals.
Founder, CIO, Real Estate Broker, and Financial Planner at Harmer Wealth Management
Answered 2 years ago
A client approached us with the dream of purchasing a charming rural property that needed significant renovations. The property had great potential, but the client didn’t have enough upfront funds to cover both the purchase price and the renovation costs. Additionally, rural properties often come with unique financing challenges due to their location and condition. To meet the client’s needs, we developed a customized financing strategy involving two key components: a conventional mortgage for the purchase and a second private mortgage for renovations. We secured a conventional mortgage from a reputable lender for the primary purchase of the property, allowing the client to benefit from favorable interest rates and terms. Understanding the client’s renovation needs, we then arranged a second private mortgage specifically to fund the renovation costs. Private lenders are often more flexible and willing to finance properties that need work, making this an ideal solution for our client. This second mortgage provided the necessary capital to start and complete the renovations without financial strain. Once the renovations were completed, the value of the property significantly increased. With the enhanced property value, we were able to help the client refinance the entire loan structure. The new, single mortgage encompassed both the original purchase and the renovation costs, offering better terms and lower monthly payments thanks to the increased property value and improved condition. Using a combination of a conventional mortgage and a private mortgage provided the necessary flexibility and funding. The renovations not only made the home livable but also significantly boosted its market value. Ultimately, wrapping all mortgages into one made financial management easier and reduced the client’s overall interest costs. This personalized approach ensured that our client could purchase and renovate their dream rural property without compromising financial stability, showcasing how tailored mortgage solutions can make seemingly challenging situations manageable and successful.