"Delivering Dreams......With Integrity !!!!": October 2010

Water Damage & Mold May Hurt Your Chances of Getting a Home Loan!

"Water damage and mold may hurt your chances of getting a home loan" is a post that should be read by every home owner prior to applying for a mortgage refinance or selling their home.  Water leaks can cause tremendous damage.  Mold is the most serious.

Las Vegas Water Damage HomeI am beginning another series about “Things That Can Make Your Las Vegas Financed Home Purchase *Blow Up* in the Middle of a Transaction.”

My ultimate goal in this series is to make Las Vegas Home Buyers aware of the challenges of a specific home’s eligibility for financing.

Congratulations!  Your lender just approved you to purchase a Las Vegas area home by looking at your check stubs, debt to income ratio and you are now approved to purchase a Las Vegas area home!

Hold the phone here, *you* may be eligible to purchase a home but is the house eligible for financing?  This series is designed for you to research a home’s eligibility for financing.

DISCLOSURE:  I am not a lender, title company, home inspector, contractor or appraiser.  I am only speaking from personal experience by working with financed Las Vegas area home buyers.  Hopefully you have hired a Las Vegas area real estate agentwho will be able to spot things that can *potentially* cause problems with your financing (mostly FHA/VA) before your contract to purchase a Las Vegas area home.

Much of Las Vegas is currently priced in fire sale status.  Many times when you see unusually inexpensive homes there is a reason – they are not eligible for financing and the seller does not wish to rehabilitate the home to make it eligible for financing.

Today’s topic at hand is “Water Damage & Mold“.  Las Vegas Mold

Water Damage & Mold may occur for various reasons:

  • A Construction Defect From a Slow Leak
  • Malicious Exit From Previous Occupant
  • The “Elements” or Weather
  • Something “Accidental”

The effects of water damage and mold could be from deferred maintenance, recent or can occur in the middle of a transaction.

An example of deferred maintenance would be a leaky roof (weather elements) or construction defect such as an incorrectly plumbed or faulty toilet base & wax ring.

Even though we don’t have “Freezing Elements” too often here, it does happen every once in a while resulting in a cracked pipe here and there.  More often than not, weather elements would be from heat & lack of utilities – baking, melting and cracking plumbed items.

Accidents do happen and some you have to wonder about bordering on being “malicious” from a former occupant.  An example of this would be:  a refrigerator water valve or plumbing valve left on.  Water company comes to turn on water and forgets to check meter.  House gets flooded.  Another example would be a deep nail or screw in the wall securing something and it hits a pipe – water may pour down walls.

Many of the above examples may cause problems with lenders funding a loan.  Sometimes the sellers are willing to remedy the situation, many times in the case of REO (aka BANK OWNED) – not.

A good home inspector will have a moisture meter on hand to be able to tell if a suspicious water damage or moldy area is dry or if moisture is still present and feeding the moldy source.

If your financing goes “kerplunk” due to a water damage or moldy mess, you may want to consider qualifying for an FHA 203K rehab loan!

"Delivering Dreams.....With Integrity!!!"

Comment balloon 1 commentSusan Morrison • October 30 2010 06:25PM
Water Damage & Mold May Hurt Your Chances of Getting a Home Loan!
share
"Water damage and mold may hurt your chances of getting a home loan" is a post that should be read by every home owner prior to applying for a mortgage refinance or selling their home. Water leaks can cause tremendous damage. Mold is the… more
10 Simple Tips to Winterize Your Home
share
This is a very complete list of simple tips to winterize your home. Prepare now for a long cold winter. Many items are energy saving. 10 Simple Tips to Winterize Your Home Now that fall has almost ended, it's time to think ahead and prepare… more
Protect Against Falls from Windows
share
This is a very important post with information that everyone with small children should read. Keep your children safe and pay attention to open windows. Screens are for bugs and not to keep children from falling. Yes, Autumn is upon us and the… more
First Time Buyer Homes Offered by Susan Morrison of RE/MAX Executive…
share
First time buyer homes offered by Susan Morrison of RE/MAX Executive Realty in Franklin MA. Call now to see this seven room, three bedroom, multibath ranch style home located at 295 Clifton Street in Attleboro, MA. This home has had many… more
Another New Susan Morrison Listing at 295 Clifton Street in Attleboro…
share
Another new Susan Morrison listing at 295 Clifton Street in Attleboro MA 02703. There have been many updates done to this seven room ranch style home with three bedrooms, multi bathrooms, newly refinished floors, new carpet and… more
Winterizing Your Home part 4
share
Home inspectors provide the most useful information. Here we have important facts about chimneys and fireplaces along with gutters and damage caused by not cleaning them out. Chimneys and Fireplaces The chimney should be inspected for… more
Our Family Room Is Freezing!
share
This is great information for those with palladium windows. Infrared cameras are a terrific tool for a home inspector to detect leaking windows. If the seal is broken, you may not realize it until a future date. It should be detected during the… more
First Time Buyer Home at 221 King Street Franklin MA 02038
share
First time buyer home at 221 King Street Franklin MA 02038. Attention first time home buyers!! This six room, three bedroom ranch style home with an attached one car garage is a perfect place to start. Located only minutes from Rte 495,… more
Handyman Special at 10 Awl Street in Medway MA 02053
share
Handyman special at 10 Awl Street in Medway MA 02053. Call now to view this seven room older colonial in an older area of Medway. This three bedroom home is a great winter project for a builder or handyman. Make an offer. … more
Mortgage Basics
share
This is a great list of the basic terms of financing for those who are thinking of a purchase in the future. It's presented simply and understandably for those who are not familiar with the process. Points, fees, and adjustable rates… more