Liz: “Do you have a ceiling amount for the loans you can provide?”
Susie: “Sky’s the limit as long as the cash flow, equity and values of the borrower make sense. There is no minimum and no maximum. The loan just needs to makes sense.”
Liz: “Do your clients approach you with the plans to do re-design and re-modeling projects a lot?”
Melody: “Not a lot, but I do have clients that when asked about goals for their future, they list an addition to their home or redecorating their home. So, we keep a separate pot of money to be the start for their remodeling plans. Some clients want to pay cash and others want to take out a loan as long as it doesn’t jeopardize their financial situation. “
Liz: “So which do you see more often- people wanting to pay cash or people wanting to apply for a loan?
Melody: “Well, they’re in my office so I never know if they are just saying that they want to pay cash because they are talking to me or not. The big thing to remember is that if you are over 85% in loans on your house and the real estate market drops you probably won’t be able to get out of your house. I try to keep client from inching up to the full value of their home even though some banks will loan them that much.”
Hope you are liking what you read. The final installment will be posted tomorrow!