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The option period is basically so you can do your inspections. Typically people get the structural guy, and a separate termite inspector. If it is an older house and issues arise in the inspection, (which they always do), then the buyer can either a) withdraw from the transaction altogether during the option period. b). go back to the seller and ask for repairs or more money off the price or an increase in the seller contribution to closing costs. c). Just proceed along if the inspection report is satisfactory. The other typical outcome is sometimes if there are a number of things that come up the buyer (or seller) will need a few extra days to obtain bids. Extensions can usually be arranged in such circumstances.
Also know that lenders frown on "repair allowances" so you can't have that anywhere. If the seller gives a concession it will pretty much have to be in a price reduction or contribution to the buyer's closing costs. The lender will also have limits on how much the seller can kick in on closing costs also, so if your deal starts out with closing costs assistance, then it will probably have to come off the price.
The other items on your list may also be issues that can arise. The underwriting requirement, however, extends beyond option period. If the house doesn't appraise, for example, that could be a factor that causes the transaction to crumble but would not have to happen within the option period for the buyer to be eligible for their earnest money back.
As far as going into the house at any time, no. It is basically for inspections.
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