Yemen Sound

Over 5.3 million homes were sold in the United States in 2019, and this number is expected to rise over the next few years. The National Association of Realtors Research Group reported that 33% of sales were by first-time homebuyers, and 88% of all homebuyers financed their purchases with a loan.

Since loans are crucial for most home purchases, it’s essential homebuyers understand the terms and conditions that can affect their ability to qualify for a home loan and how to finance purchasing a home with structural issues.

Home Inspections

All homebuyers should have the property inspected by a licensed home inspector before finalizing the contract. Mortgage lenders don’t typically require an inspection, although most lenders will require an appraisal before approving the loan.

A home inspection is a way of protecting yourself from a bad investment. Home inspectors will check the home’s exterior and interior structure and inspect the roof, electrical systems, plumbing, ventilation, and foundation. Your home inspector will identify critical issues and estimate the timeframe before the repairs are required.

Repair Costs

If a home tour or house inspection reveals structural problems, you can contact experts and get an estimate of the potential repair costs. Also, if the house has specific elements that could be potentially problematic, have expert contractors inspect them for you.

For example, if the house has a swimming pool, do a web search for “Bradenton Florida pool contractors” and contact experts from a pool company in your area. Schedule an appointment and have them inspect the existing pool to determine if repairs are required. Pool contractors will be able to estimate the cost of fixing an existing pool. You can also discuss adding features to your pool or backyard if you’re interested in creating an outdoor kitchen or adding a firepit. Custom pool builders will be able to take care of this type of pool design and inspection for you.

Also, the home may need new gutters installed. Gutters direct water away from the house, which prevents it from pooling on your roof. If water gets through your roof, it can cause structural damage to your home’s interior and produce mold growth. Water stains on ceilings inside the home can indicate an issue with the roof or gutters. Turn to professionals and get a quote for rain gutter installation if the house needs new gutters.

You can get quotes from plumbers, electricians, and other professionals to address any other structural issues identified in your home inspection. Once you have these quotes, you have a couple of options and can decide what’s best for you.

Home Loans

Using a home comparison tool makes it easy to compare home loan rates when you’re looking for a mortgage lender to work with. You can insert essential information, such as the home’s price, to determine which loans you can pursue and what different lenders are offering for that amount. The down payment, home cost, and interest rate will be used to calculate your monthly payments. With this information, you can determine how much you can afford to borrow to stay within your budget.

Each loan may have specific conditions that apply, and it will be crucial that you address your specific needs when choosing a loan. For example, in the United States, FHA loans allow individuals to include financing for home repairs in their mortgage. USDA loans don’t include repair financing. The type of loan you can use that includes repair financing may affect your interest rate and other loan terms, so you must research your options.

Buying the Home

You may be able to use the repair estimates to negotiate a lower sale price to cover the cost of some or all of the repairs. Once you’ve agreed on a sale price, you can apply for a mortgage that will cover the purchase price and repairs cost. If you’re buying a bank-owned property, this will be your only option if you want to proceed with the purchase.

You can also use your repair estimates to negotiate with the seller and have them complete some or all of the repairs before you purchase the home. This is a convenient option if you’re moving from far away or need to be able to move into the home immediately. It may also allow you to increase your loan options if you don’t need to finance repairs. One drawback is that the seller will decide what materials are used, affecting the home’s appearance.

Walking Away

If a home inspection reveals there are extensive repairs required or if the cost of financing home repairs is too high, you may opt to walk away from the purchase. Contracts have a home inspection stipulation. If the repair costs are high, you can choose to continue your search until you find the perfect home. Remember to factor extra costs of repairs into the property value and see if it still seems like a great price. If the repairs are too extensive or costly, and you don’t want to think of this as an investment property, it might be a good idea to find another property to buy.