It's not just YOU that has to qualify for a mortgage. Your HOUSE does too!
This has become an interesting topic lately here in the South Florida area as customers have learned very well that they need to get themselves pre-approved so that THEY can qualify for a new home mortgage. But did you know that eventually the HOME will also need to qualify?
There are many loans that require the property to qualify for the mortgage as well. This goes beyond the basic qualification that many buyers are familiar with - the appraisal. In case you're unfamiliar with this concept, the idea is that the appraisal has to be equal to - or more than - the contract price of the home. Your lender doesn't want you to be getting a mortgage on a house that might not be worth as much as the contract price.
But there are more! If you are getting a conventional mortgage, the home will need to have a minimum of a functioning kitchen and bathrooms. So if the kitchen is missing appliances or the bathrooms are missing any fixtures, then the home may not qualify for the mortgage.
If you are getting an FHA or other low-down-payment type of mortgage, then the lender may require that the home not need any major repairs! The home will need to have a roof in good condition, fully functioning heat and air-conditioning, and the exterior will need to be weather-proof and in good condition. Again, if these are not in good repair it is possible that the lender will not approve the home for your mortgage.
In order to navigate this complicated issue, you would be wise to have a trusted agent working for you. If you have questions on this topic, please reach out! Contact me http://www.southfloridahomepro.net/about/