I have been prequalified for a mortgage. I found a home I want to buy, but it needs a new kitchen and bath, plumbing and other work. I know the property has to appraise at the selling price or the sellers would have to take less money.
The home inspector will find things like this that are broken or in need of repair. Will that have any bearing on whether or not I will be able to obtain the mortgage?
The appraised value of the home will be based on its current condition. Mortgage lenders make loans on properties in need of repair every day. You may have to find the right lender, but that shouldn't be too difficult. You may also get a home improvement loan (a second loan) at the same time. It depends on the equity in the property and the projected value when you are done.
Depending on the circumstances of the sale, the owners/sellers often do these repairs prior to the sale and mark up the sales price based on the enhanced value. This means it may be more trouble for you, but you'll get a better price as a "fixer-upper" and the work will be done to your specifications if you have the work done, instead of them.
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The appraised value of the home will be based on its current condition. Mortgage lenders make loans on properties in need of repair every day. You may have to find the right lender, but that shouldn't be too difficult. You may also get a home improvement loan (a second loan) at the same time. It depends on the equity in the property and the projected value when you are done. 