“I’m buying a house with 20% down and my bank just said that there’s a cracked window and some electrical items that need to be fixed. Can they do that?”
Answer:
Remember the golden rule: “He who has the gold makes the rules.”
So yes, the bank can require that.
This is more common on FHA and VA loans as they have strict rules on the condition of a home. But from your down payment, I can tell you’re getting a conventional loan. Conventional loans are less stringent, so it doesn’t come up often.
Here’s the process:
- The appraiser sees and notes the items needing repair.
- The lender requires these items be repaired before the loan is funded.
- The repairs are made (may be negotiable between buyer and seller).
- The appraiser or someone at the lender must go and see that the repairs were made. In some cases a photo of the repair MAY suffice.
- The loan is funded, escrow closes, and everyone lives happily ever after.
Hopefully the electrical issue isn’t too costly. Good luck…
