We bough a house and want to add garage, second floor, etc. Does the bank need to know that the house is being remodeled, meaning raising in value?
We don’t and aren’t planning on getting equity.
Thanks.
Yea, we got permits and everything from the city. what a rip off. lol
No but your tax assessor’s office and your homeowner’s insurance company will.
No but your tax assessor’s office and your homeowner’s insurance company will.
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If you apply for a 2nd loan , they will want to know .
And you will have to get permits from the city to do anything that adds a floor or extends the footprint of the original structure .
The plans will have to demonstrate the structure can support a 2nd floor or that support beams are included in the architects drawings .
The plumbing and electrical will have to have inspections before they will give you a CO ( certificate of occupancy ) .
Good Luck
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No unless you are applying for a home equity loan to finance the projects.
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Your town-city most likely will require building permits. Your homeowners should also be notified since you also want to be protected for the increased value not to mention if something goes wrong and you have a sudden loss-no coverage because of not calling (OUCH)
Change in homeowners means a change in payment in most cases, and permits for the changes means in most cases increased taxes….this could mean escow account on mortgage payment will not be enough.
Check your mortgage agreement as some have the requirement to get improvements authorized prior to making changes.
Good Luck
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What the other people answered with is pretty much on the money. Your first step would be to call your local municipality to get building permits for the work you want to do. I would check your mortgage just to make sure there isn’t any funky language concerning remodeling. Once all the work is completed, you will need to get a certificate of occupancy and get your homeowners policy adjusted to make sure your are adequately adjusted. Be advised though that if your doing what you say you are, you could see a big change in your property taxes once the town/county re-assess your property
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7 years mortgage industry experience