Mobile: (520) 313-0352    Email: ypalmer11@gmail.com
Yvette M. Palmer, Associate Broker
AGAVE PREMIER PROPERTIES
Lender Required Repairs
Banks are very adverse to risks and one of the biggest oversights that home buyers misunderstand are lender required repairs. Whether you are obtaining a government-insured or FHA loan, you'll need an FHA appraisal. If you're getting a conventional loan, you can get by with a conventional appraisal. FHA appraisals are stricter on requiring repairs. The financial institution will not lend the borrower the money, unless repairs have been made to the home prior to closing.
Most of the time, sellers are willing to negotiate and work with buyers to resolve lender required repairs. However, if you are buying a distressed property that is selling in as-is condition, its best to know this upfront before you make an offer. When negotiating an offer, a seller may agree on a dollar cap for potential lender required repairs. Bear in mind that you maybe taking a gamble if your are going off a guesstimate and not actual repair bids.
The appraisal may require repairs on defects of the home and things that affect your health and safety. The lender learns of these repairs from notes found in appraisals, inspection reports, and insurance companies. Some of the most prevalent lender required repairs in our area are as follows, but not limited to:

Health and safety issues

Some of the most prevalent lender required repairs in our area are as follows, but not limited to:
 
  • Window security bars not accessible to release from inside of the bedroom.
  • Missing smoke detectors in bedrooms, halls, entrance, and living area.
  • The exit doors or exit gates are not a manual latch on the interior side.
  • Broken glass in windows and broken mirrors in closet doors.
  • A bedroom with only one a window that is not operable.
  • Paint peeling and/or discoloration on walls.

Defects of the Home

Some of the most prevalent lender required repairs in our area are as follows, but not limited to:
 
  • Heating system, cooling system, and or water heater non-working.
  • A cracked lid, broken inlets/outlet & leach lines in a septic system.
  • Roof leaks, exposed or rotted wood beams, eaves, or fascia.
  • Moister stains on ceilings, walls, baseboards, and thresholds.
  • Missing kitchen cabinets, counters, sink, and/or appliances.
  • Wood infestation organisms (subterranean termites).
 

Related Resources

Sitemap: