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Like the tittle says, does the LO needs to see the inspection report to order the appraisal? My agent says that he doesn't have to see it for him to order the appraisal. It's a FHA loan by the way. Thanks in advance.
The inspection report reveals that there's a little bit of dampness in the basement, i wouldn't back out of the deal for this as is not mayor, but being my first home i don't know how it works. Is an "as is" deal and i'm afraid the LO suggest to fix everything before funding the loan.
"Typical conditions that would require further inspection or testing by qualified individuals or entities
• inoperative or inadequate plumbing, heating or electrical system
• cracked masonry or foundation damage
• drainage problems"
If the inspection does note any of those (or other serious issues) you don't need to worry....
By itself "dampness" is not going to kill a deal -- in fact given the weather that much of the country has had recently "dampness" is likely being experienced in homes that have no real issues at all...
my main go to lender can do an FHA loan within the 90 day flip rule, but needs two appraisals AND a copy of the inspection report.
This is a standard HUD guideline. Anything else is an overlay.
OP -
As for the loan officer getting a copy, only you can make that decision. The way the Dodd Frank is set up, the legislation wants (actually, trying to demand) that the Loan Officer has a vested interest in the loan they make. The idea is, if the loan officer on the front line that can identify and flag an issue/problem (whether it kills the loan or not), they will do it for the "greater good" of our real estate market. That was the idea in a perfect world. But what has happened - the rules and regulations in lending have become so complex, the loan officer has actually become an advocate for the applicant and assists in the maze to closing. There's been a line drawn in the sand and I suspect everyone has experienced what a loan officer would do yesterday, they won't do today.
If the loan officer gets the home inspection report, they are obligated to turn it into the underwriter. Please note, I did not say appraiser. Loan officers do not communicate with the appraiser. So, the result will be an underwriter will make the basement a condition of approval, but not necessarily a condition of the appraisal. I have seen underwriter's ask for the home inspection report when the appraiser is clear as mud (usually due to reusing one report for one property as a template for another).
I won't mention the bank by name, but it is a large bank in America and has recently outsourced its appraisal department to India. I have a peer who just had a closing held up by the successful installation of a mitigation system for radon and review of the post test results. Oh and underwriting demanded a copy of the Home Inspection report as well. Sometimes I think that these lenders really don't want to lend at all.
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You sure about that?
