Contracts and Contractors.
In this day of stricter regulations on mortgages, there are many pitfalls that can cause much frustration on behalf of buyers, sellers, and agents alike. One thing that I’ve started to see more and more is the requirement of all receipts, and in some cases, letters and signatures from any contractor that has done repair work to a home while under contract in order to obtain a mortgage. One deal that I’ve just completed had turned into a nightmare situation of trying to retrieve various forms of documentation from each contractor in time for the mortgage commitment date. It can lead to very stressful times for everyone involved to say the least. My advice to those whose house may be under contract but may need repairs in order to make the deal happen…1) Make sure the work is done by a licensed contractor. Many times you want to do it yourself or have a friend who dabbles in home repair. Beware! Mortgage companies now sometimes require a copy of the license of the contractor who did the work. 2) Get Receipts! as well as a statement from the contractor that says all work is complete. 3) If you need to obtain a letter from a contractor for the mortgage company, make sure it is on COMPANY LETTERHEAD! Many mortgage companies will require it. 4) Lastly, keep your cool. It’s easy to get frustrated with things in this stage of your real estate transaction, but know that your close to the finish line and taking it one step at a time will see you to closing!