Man I wish I was golfing today! It’s a stunning day in SE Florida and I have to attend inspections rather than playing hookie and golfing with some buddies…Oh well.
Yesterday I found myself answering a question that comes up alot…Namely, what (if anything) is a lender requiring these days in the way of INSPECTIONS for new loan applicants. It’s a good question so I’ll post to answer…
1. IF you’re a minimum down payment buyer (FHA/VA – 96.5%/100-107%) then your lender will likely require seeing the roof report and a termite report from a licensed inspector (No need to be the same inspector)
2. If you’re a conventional (20% down or more) it’s likely your lender will not ask for anything from you. Why? Well, FHA/VA loans are underwritten (Guaranteed ) by the government and conventional loans are not.
Problems can arise when unaware agents, after being asked by their buyers lender for the inspection reports…Forward the entire report (appliances, electrical, plumbing, mechanical, etc) to the bank instead of pulling only the 2 mentioned above…In doing so, the loan underwriters will now require ALL repairs be made prior to closing! What if it’s an “as-is” contract? It aint anymore! What if the seller can’t afford to make all the repairs? It’s dead! A credit you say from the seller to the buyer in lieu of repairs? NOT on the HUD!
The bottom line here is make certain you only send what’s asked for to a buyers lender! In this case, more is not better…Less is better. I’m NOT NOT NOT advocating hiding things from a buyers lender, I only answering the question of what’s Lender REQUIRED…
Hey cart girl! Gimme 2 Miller Lights!! Oh, sorry, I mean…That’s my take on things today. Gotta head to inspections now, someone bring my putter!