Building permits and lender appraisals
Making additions, upgrading plumbing or electrical systems, remodeling your kitchen or bathroom? Some homeowners have chosen to avoid applying for permits when making improvements to their homes. When a homeowner decides to refinance or sell their home, they may find that lenders will not give value for the non-permitted upgrades.
In today’s lending environment the comments made by the appraiser in his report regarding the condition of the property could delay or keep the transaction from closing. If the appraiser notices a substantial difference in square footage between the public record and his measurement of the property, the underwriter will request that permits be provided. In the absence of permits, if the transaction were a refinance, it would probably not be able to close.
Need more information? Call Joe Elizondo of Northeast Financial at 323-256-7833 or email Joe at neast-financial @ sbcglobal.net.
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