Yay, closing in 3 days!

[maynard123]

I'm hoping someone can help me understand how this scenario is going to play out after closing....

 

My husband and I are closing on our house in a few days and I am still confused about how our 203k loan is going to "work". I am not really clear and I'm not thrilled with how our loan officer is answering us. Ok... So we went through the whole process and got our estimates for the renovations and they were accepted and approved. Our improvements are pretty straightforward.... New appliances, new carpeting, full interior paint and window treatments. The thing is this.... Other than our painter, everything really needs to be paid up front. And frankly, we don't have an extra $6k laying around to do that.

 

The loan officer just told me that we get 35% of the money within a few days of closing. The rest is in escrow until the work is completed? So, how do go about getting the work done when the money is tied up in escrow? The only vendor who can be paid after the work is done is the painter, and he needs to be the first thing done because we don't want painters in after new carpeting is installed.

 

I am lost. Our loan officer says his 203 dept will guide us after closing, but I hate being in the dark until then.

[Brian B The Loan Professor]

I'm hoping someone can help me understand how this scenario is going to play out after closing....

 

My husband and I are closing on our house in a few days and I am still confused about how our 203k loan is going to "work". I am not really clear and I'm not thrilled with how our loan officer is answering us. Ok... So we went through the whole process and got our estimates for the renovations and they were accepted and approved. Our improvements are pretty straightforward.... New appliances, new carpeting, full interior paint and window treatments. The thing is this.... Other than our painter, everything really needs to be paid up front. And frankly, we don't have an extra $6k laying around to do that.

 

The loan officer just told me that we get 35% of the money within a few days of closing. The rest is in escrow until the work is completed? So, how do go about getting the work done when the money is tied up in escrow? The only vendor who can be paid after the work is done is the painter, and he needs to be the first thing done because we don't want painters in after new carpeting is installed.

 

I am lost. Our loan officer says his 203 dept will guide us after closing, but I hate being in the dark until then.

 

 

Anyone that bid the work should have been informed that they would not be paid until the work was done - and they would have to do a draw on escrow. This is typically how it is done.

[maynard123]

Hmmm.... We were told it was acceptable to get the work performed by Home Depot, who is who we are using for the appliances, carpeting and window treatments. This is so frustrating.... We have a GC involved but as far as we understand he is only there to assure the work is being Performed.

 

Any advice, Brian?