Best Type of Loan for Home Addition?

[questions]

Hello: I am looking into either purchasing a new home or adding additional square footage to my current home. The market in Arizona booming and home sales are sky rocketing which has increased home sell prices. My questions is what type of loan should I apply for if I choose to add on to my home? For instance, my current lender is Chase who sends me info advising of my pre-approved status with no appraisal fees, no credit pulled, and absolutely zero out of pocket costs. Could this be true? Also, would I be better off just selling my home and purchase a new home?

Any assistance you could provide would be greatly appreciated.

[jmjj215]

Re: Best Type of Loan for Home Addition?

I thought the market in AZ was starting to signs of slowing? Which specific area are you in? I think the best way to do an addition would be to save up for it - though that may be somewhat old fashioned. How much sq. footage are we talking about here?

Would you be purchasing another home in the same area? Just moving laterally in home value?

[Ima saver]

Re: Best Type of Loan for Home Addition?

I would buy a new home rather than going thru the time and trouble of a remodel job. You usually cannot recoup what you spend in fixing up your home, when you sell.