Daily Archives: June 12, 2012
Q. What should I do to get my home ready to sell?
A. You want your home to be in the best condition possible before you list it for sale. But now, there is an even more compelling reason to do this.
Borrowers are getting more thoroughly examined for a loan than ever before, but also the properties themselves are being scrutinized as never before.
Many lenders are now considering the physical condition of a property to be just as important as the value of the property.
Historically the FHA and VA have been more stringent than conventional lenders with respect to the condition of a property but now real or perceived deficiencies in the property’s physical condition may cause as much of a problem for a conventional loan as for one that is FHA or VA.
In point of fact this is not a bad thing. The institution that is putting up the lion’s share of the money for a home purchase certainly has a right (perhaps even an obligation to its investors) to require that the security for the loan is in an acceptable condition.
Many appraisers are no longer just doing the things they’ve always done – measuring property, drawing floorplans, etc. They are conducting their own mini-inspections, which may not affect evaluation, but, if flagged, could become a condition of loan approval.
Loan underwriters may ask to see a copy of the home inspection and property disclosure to see what the seller has disclosed to the buyer about the property’s condition and history.
Even if a deficiency has been revealed through a home inspection that a buyer chooses to ignore (perhaps because they are going to remodel anyway), the lender could insist it be remedied before they’ll approve the loan.
I’m here to help in any way I can and, of course, answer any other questions you may have about real estate. Feel free to call me.