I was just recently approved for a conditional mortgage loan with NFCU on a house I'm going to be renting for at least 1 or 2 years-then deciding what I'm going to do with it after I retire (it's almost 4 hours from where I currently reside in another state). May go and live in it or may just stay put where I am now.
My question is how are they with their appraisal process? My loan officer said one of the conditions for the approval is that the house must be appraised and any repairs noted much be taken care of before the loan is officially approved. My biggest concern with that is the inside of the house is in rough shape (it's been a rental for several years--built in 2004). I had a home inspection done a month ago before putting in a contract and the inspector noted several things wrong inside (and a few outside) needing correction. I got it contracted for several thousand below the asking price (which was a little too high to begin with) but with the agreement I take it as-is. My realtor says what NFCU is doing is normal loan procedure for a mortgage and that appraisals are generally not as detailed as home inspections---Is this true? What are some of your appraisal experiences with less that perfect properties?
It is true depending on the type of loan. An FHA loan will be much more detailed than lets say a conventional loan.
@Creditinspired: This is a conventional loan-so I guess I should consider myself fortunate.
Yes, you're fortunate--woohoo--and I agree with your Realtor.