Repair Credits-What You need to Know about New Non-FHA Lending Requirements

In the past, when there was an issue with a home, such as a necessary repair that was noted at the final walk through, it was common practice to simply work out credits at the closing table to take care of such matters. Today, that situation has changed and a number of lenders are now refusing to allow repair credits at the closing table. Additionally, some lenders are now requiring that repairs noted on the inspection report be completed prior to the loan being funded.

The home buying process is one that can already be somewhat stressful, particularly for first-time homebuyers. As a result of such new lending requirements, homebuyers may be even more nervous due to concern that their deal will not close at the last minute. With some knowledge and preparation; however, there is no reason to be concerned.

Handling Repair Credits When Buying a Home in Santa Clarita

First, it is important to be aware that your lender may require you to show your purchase agreement. In addition, your lender may ask to see any reports, inspections, or disclosures based on what is written into the contract. With that said, it is also important to be aware that various lenders have different lending requirements as well as policies regarding how credits within the transaction are handled. If you happen to encounter this type of situation, it is important to determine the actual requirements of the lender with whom you are working. If you are not certain, do not hesitate to ask the underwriter to provide you with the lender’s specific regulations regarding the loan origination. Such requirements may be more prevalent, but they are not the case with all lenders, so you may find that shopping around can help to resolve this problem, as well.

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Hilary Blaha is a real estate professional with Pinnacle Estate Properties, Inc and serves the Acton, Agua Dulce and the Santa Clarita area, including; Newhall, Saugus, Canyon Country, Valencia, Stevenson Ranch, Westridge, Castaic, Val Verde.
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