I posted earlier about a relative's house I (the estate) had on the market and the buyer's had problems with their FHA loan. Ultimately, one of the parent's co-signed,but closing was delayed about 10 days.The buyers did not get the FHA loan so they proceeded with a conventional loan. Now that I am able to breathe again, I have a question: The buyer's original contractor's inspection found repairs that needed to be doneon the house. (Most items I agreed upon).After that was accomplished, along came the FHA appraiser and found ADDITIONAL items for me to fix. Once again, I complied. Meanwhile, the FHA loan never went through. I do not fault the buyers-it's the bank I have a problem with. Why would they send an appraiser to the property when the loan isn't secured? In retrospect, I suppose I should have waited until the latest possible date to get the repairs done, but getting the handyman lined up is a task itself. Was my experience typical?
Unfortuntely many buyers pay for the appraisal without loan approval, and many are out of bucks when the house doesn't appraise out or credit problems. Same for home inspection. Solutions include co-signer.
I still think many buyers are not pre qualified well upfront, failing to pull credit history from the get go. I don't care what anybody says.. you cannot pre-qualify a buyer via a phone conversation with the buyer. Credit must be pulled.
Rest easy the Realtor helped find solution and got your deal closed. Feel blessed, as many are trying to sell their home here and across the country.This message has been edited. Last edited by: real estate lady,
Every area is different but, in our market it is typical to get the FHA appraisal done early in the loan process. Most listing agents will advise their sellers to include an early time frame in the contract for it as well. The thought is it is better to know sooner rather than later if 1)the property will appraise, 2) If FHA is going to require repairs and if they do it gives the sellers time to address the repairs.
There was a time when the appraisal was the last thing ordered...and then you were 30-45 days into a deal that fell apart over FHA repairs or the property didn't appraise and the rate lock was expiring, or there was no time to get repairs etc.
Most of the time in my area we only give a buyer 1 - 2 weeks for the home inspection. Depending on what the problems are and how the contract is worded - the seller does not have to repair everything.
Some of the difference can be between what the traditional home inspector is checking and what the list the FHA appraiser uses. Also some of the difference can be the thoroughness of the home inspector - they are not all the same.
