David Woldman
David Woldman
SunTrust Mortgage
Column Name: Home Finance
704-651-8377

Read the news headlines and you may think it’s pointless to waste time visiting the bank to apply for a home purchase or renovation loan. “No jumbo loans available” or “Banks not lending” are the headlines of the day. Don’t be fooled. Actually, renovation lending has greatly increased from 2008.

The interesting fact about the current economy is that homeowners have a big opportunity many don’t even recognize. With rates at a 57-year-low, now is the best time in recent history to renovate your home. SunTrust loves to make renovation loans; they are good for our economy, and money is available for those who have budgeted, spent wisely, and have a good credit history to show for it.

If you have accumulated equity in your home, the market is ripe for a renovation project. Perhaps the updated kitchen you’ve always wanted or the master bathroom you’ve dreamed about? You can qualify for up to 80 percent of your loan needs. As an added bonus, most builders are turning around projects at a faster rate.

Another misconception floating around out there is the scary notion of losing your home if you lose your job. I can’t speak for every bank out there, but that’s not the case at SunTrust. Say, for example, you’ve taken out a home renovation or construction perm loan at the historically low interest rates available now. There’s no reason to be afraid that a job loss or rate increase will throw a curve ball into your budgeting, making the process unaffordable. You can have your loan locked in permanently at today’s favorable rate at the beginning of the renovation project, negating the need to convert to another, maybe less favorable rate, later when your project is complete. If the rates are lower at the end of your project, you can re-negotiate the loan for a better rate, or even move from an adjustable rate mortgage (ARM) to a fixed rate loan.

If you take a step back and look at the banking industry, you can see the market went from mortgage lending to mortgage giving and is now back to mortgage lending, a self-correcting process. Money is available so make sure you take advantage of the favorable lending climate if you have a good credit report and a project you’re itching to complete.

David Woldman is SunTrust Bank’s number one producer in the nation for mortgage lending products and for six years has been the number one residential construction-permanent lender nationally. He has been providing mortgages in Charlotte for 13 years and opened SunTrust’s Charlotte mortgage department in 2002. He ensures Charlotte residents are informed about the latest mortgage lending practices and opportunities and says “America is on sale and it is time to take advantage of it. Even jumbo loan rates are very attractive.” He can be reached at 704-651-8377.