To navigate your project, you need some idea of the steps and milestones. While the renovation loan process is never exactly the same adventure twice, there is a common path.
We’ve guided hundreds of clients through successful projects. The Path is an overview of the process and highlights the milestones you’ll need to hit to close on time. There are ways to accelerate and pitfalls that can slow you down. That’s where TeamReno comes in: We share our experience and the experiences of the many who have gone before. Here is The Path we’ll travel:
Day 1: Agreement of Sale reached
Contact us to begin your official application.
We’ll generate documents and disclosures to e-sign
We’ll let you know if we need any outstanding items
Within 48 hours, you’ll receive a link to pay your appraisal fee- please do this immediately
Work on contractor bid. (It’s not final until its written in detail and itemized!)
Project scope defined and priced.
Make decisions, use allowances where possible (flooring/cabinets for example)
If floor plan is changing provide sketches for clarity
Day 14: Contractor Bid & Home Insurance Quote Due
This is a key step! We’ll review the bid/sketches and either:
Confirm you’re good to go or
Let you know what is needed to move forward.
At this point you should have a home owner’s insurance agent and quote for us as well.
Day 15: Order Appraisal
The completed bid/sketches are sent to the appraiser.
Day 33: Appraisal Due
Appraisals can take from 2-3 weeks, depending on the location, property type, and complexity of work.
Day 40: Underwriter Review
This is a big milestone. The underwriter will review:
Remaining credit conditions
Appraisal (30-40 pages)
Title search results
Contractor validation docs
Home Owner’s Insurance
** We’ll be updating you afterwards on any remaining/needed items to move to being cleared to close.
Day 54: Preliminary Closing Disclosure (CD)
You’ll receive a link from email@example.com to acknowledge/e-sign you preliminary Closing Disclosure. This is not the final version/amount needed for closing; it’s just a draft. It must be e-signed by midnight.
Day 56: Final Loan Approval
This is your clear to close. It means every condition has been met and we’re ready to move to closing!
Day 57: Prepare for closing
Confirm a closing date/time/place with the title company
We send instructions and closing documents to the title company
We work with the title company to create your final closing numbers (a lot of back/forth here)
Day 59: Provide final amount needed for closing
We’ll tell you the exact amount you owe
You’ll need to get a cashier’s check or wire (we’ll discuss what’s best)
Day 60: Closing Day!
Bring your funds and photo ID
Sign all loan documents
Get the keys!
Within 24-48 hour of closing you’ll get instructions on the Draw/Renovation Process
Congratulations – the home is yours! Now the REAL fun begins — it’s time for renovations to start! Our Draw Disbursement Team will be in touch and you may begin the renovations immediately.
Good to know:
Goals, not Guarantees: All milestones & dates are targets to help you close on time.
You can move faster/slower on the timeline, so be careful of timeframes.
Be responsive! Providing things quickly keeps you on track.
No two experiences are the same; stay flexible.
Find out how much home you can afford, estimate your monthly payments, see if it makes sense to refinance, and more!