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Why Discover Necessary Repairs?

Maybe, one of the homes you’re thinking about buying appears to be a ‘scratch and dent’ special. In general, the property is okay but you are wondering about what needs to be fixed before or right after you move in if you, do in deed, proceed with the purchase. This is where the property inspection report comes into play.
Note: the inspection report is not the same as a property appraisal.

The Benefits of Appraisal & Physical Inspection Reports

The appraisal helps determine the market value of the home while the inspection attempts to identify any structural or physical issues. A full appraisal, should your lender require one, will notate the property’s overall condition. However, basic repairs–relative minor ones–are not listed. If you are tempted to forgo a physical inspection, you must realize that this often a highly regrettable mistake. A thorough inspection is well worth the investment. Do not hesitate to ask your real estate representative for some qualified property inspectors to interview.

Consider Basic Repairs

Do the windows need some re-caulking? Perhaps the carpet is notably worn out. Are there cracks in the sidewalk? All of these items are relatively minor and your lender probably won’t care about any carpeting issues before approving a home loan application. The cracks in the sidewalk might be an issue but typically won’t be  unless the interior door jams show signs of settlement.

If this turns out to be one of your prospective buys, it pays to hire an engineer to determine the cause of any settlement issues in the event the property needs to be lifted in certain parts of the home to resolve settlement concerns. Otherwise, the property should move through the loan approval process.

  • If there are some needed repairs, appraisers will note ‘deferred maintenance’ associated with the home. As the phrase implies, the property needs to have certain issues fixed that should have been fixed some time ago. The issues were not alleviated. Instead, they were put off, possibly, to let the next buyer deal with them.
  • When the term ‘deferred maintenance’ pops up somewhere in the report, the lender will be concerned.
  • Was mold in the home noted? If so, your lender will want more information before moving further. Are there foundation cracks; will this require an engineer’s report? Are windows cracked or broken? Do not be surprised if  the lender requires repairs to be completed prior to loan funding.

Your prospective home is probably the biggest expense you’ll incur in your lifetime. That said, it pays to make sure the property is in livable condition, and the lender wants to make sure the home is in such a condition that financing won’t be a problem.

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