203K loan or Similar loan process

[Account Closed]

Hey everyone,

We are planning to use the 203K or Homestyle Renovation loan on our next primary property purchase. My question is when does the contractor come into play when determining cost of renovation and mortgage loan amount?

[Andrew Postell]

@Account Closed thanks for posting! Always great to hear from a fellow Texan. Bigger Pockets does have some good state specific forums and Texas is their most active forum. Feel free to post there if you ever need some more "local" advice about things.

And you should have a contractor set to go BEFORE you even find your house.  You will need that bid to provide to your lender before the appraisal can be performed but you'll need that bid to see what you will need to offer on the home.  If the purchase price + rehab is way over the value, then it would not be prudent to make an offer at the purchase price for that home. So having your bid will tell you what you should be offering based on your realtor's comps.