Tuesday, September 4, 2012

Wells Fargo Draw Center

I spoke to Andrea from Wells Fargo draw center and she was giving me an introduction of the rehabilitation program and how it works. She will be disbursing 35% for each of my contractors. FYI - You can have more than one contractor/bid with an FHA 203K loan. My first bid was for rehabilitation work and the my second bid was for termites.

Word of advice, if you do have two different contractors, make sure you ask your draw center representative to issue you two checks one for you and contractor #1 and the second check for you and contractor #2. If you don't give them specific instructions, you'll have to chase for signatures...

When I tried cashing the cashier's check that was given to me and contractor #1, I was not able to get immediate credit, because according to Bank of America they cannot cash checks larger than $5,000. My contractor and myself signed the check and took it to the bank for deposit. I paid him from my account because I really wanted him to get paid at the moment. Check cleared two days later.

Another important thing you should know is what type of permit is the draw center requiring from you. In my case, Andrea was telling me that they only needed a General Building Permit, even after my contractor filled out a Wells Fargo form requesting what permits were required. The permits that my contractor selected were, electrical, plumbing, and HVAC...but according to Andrea's computer, they needed a General Building Permit.

It's literally useless to fill out the "Permit Required Form" from Wells Fargo if they supposedly have a "special team" that reviews the bid to see what permits are needed. In any event, my contractor got all 4 permits. If you don't give them the permit they are requesting you'll either have to have the city write them a letter or have the bank rep call the city to find out. Without the agreeable permit, no final draw will be released.

I'm happy to report that after so much stress dealing with the bank, contractor, and inspector, my house finally passed inspection! Inspector signed the permits today and will be given to me by my contractor this evening. I can finally do whatever I want with the property and not worry of someone checking my work...

Will be posting pictures up soon