Do You Need a Final Bid From the Contractor Before Applying for a Loan?
Proper maintenance of your HOA clubhouse, common areas, or repairs may require a contractor's help. And if you need a loan to help accomplish this, the question of whether you need a final bid before applying may come up. This information is essential because there can be ramifications if the correct information is not in place. So, HOA Capital is here to answer this question and provide more information about considerations for hiring a contractor for the job.
Do You Need the Final Bid Before Applying?
While the lender will not need a final bid for you to apply for the HOA loan, you will need one to close it. Having a calculated total is vital because you want to make sure you have the right amount of funding available to you, plus some overage to ensure that the project is fully completed. It also lets the lender know that their investment will be finished and within budget and allows them to weigh the project's risks.
What Information Do You Need from the Contractor?
Once you have decided that the repair or upgrade needs to be completed, you will need to determine what kind of contractor you need before contacting the lender. This information will also include a detailed layout of the project that needs to be completed and specific questions like
- Are they licensed, bonded, and insured?
- Will they clean up the work area?
- And do they communicate in a timely way?
All of these can help you better understand if they are going to meet the needs of your project and can give reference to their credentials.
What Details Will the Lender Need?
There are a few key pieces of information that your lender may request from you, and these can include:
- The contractor's information: phone number, name, website, and e-mail. In addition, they may also need direct contact with whoever oversees the project.
- A clear timeline of the construction process, including the completion date and a layout of what days and times the subcontractors or contractors will be working on site.
- The contractor's procedure if changes need to be made during the plan. This helps the bank better understand what will be required for changes during the project.
- You may also need to provide a payment breakdown based on how the project is progressing. The size and complexity can impact this situation, so you want to be sure you have at least a 10% cushion for the end.
- If there are any warranties or guarantees the contractor offers, this is also something that may be required.
Once you have gathered this information, you can start getting bids from the contractors and present this information to the lender to start the process. Having a clear outline of the plan and final bid will help the bank better understand the project and can help you get the funding you need to complete the repair or renovation.
HOA Capital, Offering Association Loans Combined With Support and Education
Getting the final bid is crucial for securing a loan that is right for your HOA needs, and part of having a clear outline is working with a professional company like HOA Capital. Our team of Minnesota experts will help to strategize the right loan for your capital improvement plan or any HOA exterior maintenance that may arise on your property in a step-by-step process.
We want your experience to be as streamlined and efficient as possible, so you feel confident in your decision; contact us online or call us at 952-836-9593 today.