| New
Construction: If a walk-through inspection reveals a problem, but I
choose to go through with closing anyway, can I retain a percentage of
the down payment (or mortgage amount) - - not to be paid until the
repairs are made? |
|
. |
| If you want to go through
with closing, you will not be able to hold any of your money back or
the lender will not fund the loan. You just have to trust that the
builder will make the changes, and they normally do.
You can request the builder put money
into escrow to be held until the repairs are completed, but most will
be unwilling to do that. Plus, if the lender becomes aware of
problems they may delay closing or require a deposit (from either you
or the builder) that is approximately one and a half times the
estimated cost of the expected repairs. |
|
. |
| What
are the terms of the pest inspection? If after a few years you are
living in the home, are the sellers responsible if termites are found? |
|
. |
| Assuming you had a pest
inspection performed when you bought the house, the terms of the
guarantee would be with the pest inspection. You will probably find
it with your other documents from when you bought the house.
Expecting the seller to be responsible
for something a couple of years after the fact is not really sensible.
The only way a seller should be liable is if they knew of an
infestation, but did not disclose it. |
|
. |
| What
should I be aware of that the house inspector should be doing during
the inspection of the house I am interested in buying? |
|
. |
| The Inspector should be
checking the following things: |
- Drainage
- Foundation
- Roof & Water Leaks
- Paint
- Plumbing
- Wiring
- Heating
- Fireplace
- Tile
|
| I am
interested in buying a home which the seller is listed "as is." Will
a bank require a home inspection before approving a loan? Will a bank
approve a loan on a home needing repairs? |
|
. |
| A bank doesn't require
you to get a home inspection in order to obtain a mortgage. If there
are obvious major problems that affect value, the appraiser may note
it in the appraisal report. However, their job is not to inspect the
home, just to determine value.
Although the bank doesn't require a
home inspection, if your purchase contract mentions a termite report,
the lender will require that to be performed and pass before you
close.
A termite report lists more than pest
infestations. It also mentions obvious structural defects, such as
wood rot, etc. These are classified into two groups - category 1 and
2. All items in category 1 must be repaired prior to closing.
However, the lender does not stipulate who must pay for those repairs. |
