Paying for repairs before closing – how can we not get screwed?

TL;DR – Mortgage lender won’t approve loan, until kitchen floor gets replaced for an as-is house even though we planned on replacing after closing. How can we do repairs and not get screwed if for any reason we don’t close?

Context – we are in a process to close on our first house. It is exactly everything we wanted, very minor work with a lot of upside potential in the exact area I want. House we are buying is being sold as-is. Our offer was originally rejected, but the selling agent contacted us 3 weeks later after original buyer offered way too much before looking at house and tried to talk down on price later in which the seller rejected.

We just got home from getting house inspected. Nothing major other than sewer needs jetstreamed and kitchen floor was damaged from previous dishwasher leak(they disclosed the damaged floors). The official inspection report won’t be sent to us, until Sunday.

Situation – when we got home, we was notified that our appraisal report was complete. Home value was exactly what we offer with +$40k potential increase after repairs are complete. Mortgage lender has notified us that our loan will not be approved, until we fix the kitchen floors and replace hand rail on deck. We are freaking out because this is the first time we have gone this far into the home buying process and are worried if we go ahead with the repairs and the house does not close for whatever case that may be, we just replaced someone’s floor for free. We have not contacted the sellers just yet and our agent is gone for the weekend to visit family.

For anyone that has been in this situation before, is there any risk that we could potentially do a repair just for sellers to back out? What would be our options for doing the repairs for an as-is house assuming seller isn’t willing to credit us for replacing floors? Is it possible I am just freaking out for nothing and just need to get the repairs over with? Thank you everyone in advance! If there is any confusion, please let me know and I will try to answer any questions best I can.

submitted by /u/mrkyngg
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TL;DR – Mortgage lender won’t approve loan, until kitchen floor gets replaced for an as-is house even though we planned on replacing after closing. How can we do repairs and not get screwed if for any reason we don’t close? Context – we are in a process to close on our first house. It is exactly everything we wanted, very minor work with a lot of upside potential in the exact area I want. House we are buying is being sold as-is. Our offer was originally rejected, but the selling agent contacted us 3 weeks later after original buyer offered way too much before looking at house and tried to talk down on price later in which the seller rejected. We just got home from getting house inspected. Nothing major other than sewer needs jetstreamed and kitchen floor was damaged from previous dishwasher leak(they disclosed the damaged floors). The official inspection report won’t be sent to us, until Sunday. Situation – when we got home, we was notified that our appraisal report was complete. Home value was exactly what we offer with +$40k potential increase after repairs are complete. Mortgage lender has notified us that our loan will not be approved, until we fix the kitchen floors and replace hand rail on deck. We are freaking out because this is the first time we have gone this far into the home buying process and are worried if we go ahead with the repairs and the house does not close for whatever case that may be, we just replaced someone’s floor for free. We have not contacted the sellers just yet and our agent is gone for the weekend to visit family. For anyone that has been in this situation before, is there any risk that we could potentially do a repair just for sellers to back out? What would be our options for doing the repairs for an as-is house assuming seller isn’t willing to credit us for replacing floors? Is it possible I am just freaking out for nothing and just need to get the repairs over with? Thank you everyone in advance! If there is any confusion, please let me know and I will try to answer any questions best I can. submitted by /u/mrkyngg [link] [comments]

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