How Damage Can Put an End to a Home Sale
If a home has a leaky roof, a cracked foundation or other problems, you may be able to get the property at a price at below its typical market value. However, your lender or insurance company may not be as enthusiastic about putting up the money to buy the house or exposing itself to a liability claim.
Someone Could Get Hurt on the Property
An insurance company may be concerned that someone could get hurt if the roof collapses or someone steps on a shard of glass while renovating the kitchen. Insurance companies could also be concerned about having to pay for a new electrical system or paying to repair the garage after a minor wind storm causes it to topple over. In some cases, an insurance provider will not agree to provide a homeowners policy until after fixes have been made.
Lenders Don’t Want to Pay More Than a Home Is Worth
Lenders generally don’t mind allowing people to borrow money to buy homes that need to be repaired. However, they may be worried that a homeowner won’t follow through on the needed repairs or otherwise fail to renovate the home. This could result in less motivation to make mortgage payments and eventually defaulting on the loan. The good news is that renovation loans and other products can help finance repairs or upgrades.
Never Assume That You’re Not Eligible for a Loan or Insurance Coverage
Working with mortgage brokers in Las Vegas may help you find a loan product that meets your needs. They may also know about insurance products or providers that are ideal for those looking to buy a home with the intent to renovate it.