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Our lender is requiring repairs to be done on a house we are trying to buy. Unless the repairs are done, we can't get the loan.
However, our lender hasn't told us what repairs are needed and this has been going on for weeks. He finally got us a repair list, but didn't have a document or a formal email telling us what repairs. It was a screenshot and no one can view the screenshot. It's really frustrating.
How are repairs that are needed communicated to everyone usually?
Sounds like FHA -- seller has to agree to get the place up to FHA standards. Don't know why the lender won't give you a list of requires repairs. Maybe there is just miscommunication, the repairs have to be done by the seller...
I assume the lender's repair requirement was based on the appraisal report? The appraisal report should list items that need repair.
The lender said ask the appraiser. The appraiser said it's up the lender.
Quote:
Originally Posted by chet everett
Sounds like FHA -- seller has to agree to get the place up to FHA standards. Don't know why the lender won't give you a list of requires repairs. Maybe there is just miscommunication, the repairs have to be done by the seller...
It's not FHA. It's a regular conventional loan putting 20% down.
It's like these people don't want the loan to close. It's very frustrating.
Appraisers for conventional loans DO NOT as a matter of course list anything needing repairs. If the palce appraised out above the agreed to price you are going to be OK. If it DID NOT appraise out it is unlikely that 'repairs' are what you need to be thinking about...
When a conventional loan is offered with 20% and the appraisal does not find the agreed price acceptable the buyer ought to think about getting the seller to accept the lower appraised value OR the buyer will have to bring more cash to still do the deal...
Inspection reports are a whole different thing. Buyer orders and inspection. Lender orders appraisal.
Appraisers for conventional loans DO NOT as a matter of course list anything needing repairs. If the palce appraised out above the agreed to price you are going to be OK. If it DID NOT appraise out it is unlikely that 'repairs' are what you need to be thinking about...
When a conventional loan is offered with 20% and the appraisal does not find the agreed price acceptable the buyer ought to think about getting the seller to accept the lower appraised value OR the buyer will have to bring more cash to still do the deal...
Inspection reports are a whole different thing. Buyer orders and inspection. Lender orders appraisal.
Clear?
The home didn't appraise, seller reduced the price, but it's still above the appraised price. We are bringing the additional cash to close. Every single thing is good and checked. It went through underwriting and it was approved EXCEPT one condition. That condition is the repairs. And our lender is giving us trouble on what repairs are needed. Especially on one particular item, 'wood rot and water damage around windows.' But they aren't saying which wood rot and which windows. (All windows will be eventually upgraded after closing as they are wood windows and we'll upgrade to maintenance free vinyl windows). But anyway, they won't tell us which windows and what wood rot.
I'm just so frustrated and I'm venting. It's like everything is done, we have the money, underwriting approved the loan from a monetary perspective and these people can't figure out what repairs and get their act together.
However, a visual inspection by you, your agents or the seller would probably be able to determine which windows show visible rot and water damage. The appraiser is reporting what he sees. He doesn't go in 'too deep'.
Sounds to me that this lender does not want to do this deal on this house with you as borrower. The sign of that is that they are not being helpful, if this is just an overworked / under trained loan person MAYBE you or your agent could get better results 'going over their head' but frankly that might just result in more of the same.
If the lender has said through the person that you are working with "this house does not meet our lending standards due to wood rot" I would not assume that if you fix the rot the lender will simply say "OK you are now good to close". There is pretty good chance this lender is using the wood rot as an excuse not to fund YOU in THIS house.
If you have the time to get a different lender than MAY be a smart move.
If I was the seller I MIGHT be inclined to address the rot, BUT ONLY IF there was some guarantee that YOU would eventually buy the house or COMPENSATE me for lost time on the market / costs.
Did you not get an inspection? Did the bad windows / rot not come up? Where is the seller in all this?
I have a suggestion once you figure out exactly what needs repair and the cost. Check if the lender will allow the seller to kick in repair cost $ towards a post closing escrow account to cover the repairs. Then after closing you kick in additional $ to cover cost of window replacement plus repairs as needed.
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