Originally posted by @Ulf Mansson:
Hi Fredric and everyone else!
I can add to this with experience from the Swedish market. What you do after you done the renovation is a new valuation of the property. It needs to be done by an appointed valuation firm from your bank, they will give you a list of companies to contact. Based on that valuation you can refinance. The biggest problem in Sweden, has been for a couple of years, is that it's really hard to get more than 75-80% loan on the property based on the valuation.
You stated that you received a pre-approved loan of only 15% down, that's really good. But at the same time, I think you need to talk with the bank right away about your strategy to refinance after the rehab. Or go for the other solution, find a new bank after a year and refinance then.
We don't have any closing fees and other fees in Sweden as long as you don't sign up for a fixed interest rate for several years. The cost you have to pay to refinance is the cost for "pantbrev" (sorry don't know the english term for it). The cost is 2% of the amount you want increase your loan with.
Hope this helps! Good luck
Hi Ulf,
Thanks for sharing your experience.
Yes, I am aware of the re-valuation of the property that needs to be done with a third-party company.
Okey, thanks for letting me know that it´s likely to only get 75-80% loan after rehab you can have on your property.
I´m about to contact the bank about a property we are looking at and ask about the refinance process after rehab in general, my bother and I set aside 300k together for downpayment and got a pre-approval for 2 million SEK, that makes it 15% DP. I like the solution of going to another bank to refinance.
I am a little bit hesitant to go to a private money lender at first for some reason, do you have any experience with that?
Thanks for the remainder of the "Pantbrev" I have that included in my calculation.
Thanks Ulf