The paper said “diamond in the rough.” Which means either it needs lots of work or perhaps just a little TLC. But exactly how “rough” can a house be before a lender decides the collateral is not healthy enough to issue a mortgage? And what happens if you want the seller to fix something before you’ll close the deal?
Upon contract, one of the first things you’ll want to do is have the home inspected for structural integrity, defects and potential problems. Note, this is not the function of a licensed appraiser who determines the market value for the home. A home inspection helps to ascertain the overall “health” of the house you’re about to buy. A bad roof, leaky plumbing or wood rot can usually only be found when a house doctor crawls through the attic, under the house and on the roof. If there are major problems found, potentially it can stop the deal dead in its tracks. That’s why most lenders won’t order appraisals on properties until an inspection has been performed.
Written By: David Reed. If you would like to continue reading, click here.