The inspection report lands and the list looks scary. Before assuming the financing falls apart, look at what a lender actually reads in those pages, and what it ignores completely.
The nature of the defect, not its cost
Lenders worry about structure, the roof and active water infiltration, because those affect the value of their security. A dated kitchen, worn floors or paint that needs redoing? They don’t care, even when the repair bill is bigger.
Three doors open
- Renegotiate the price, presenting the report and written quotes.
- Have the seller complete repairs before closing.
- Walk away, if your inspection condition is still live.
There’s a fourth option: buy as-is and repair it yourself. That requires the lender to accept the current condition. On a structural defect it may hold back funds until the work is done, or decline outright.
Properties sold without legal warranty
On a bank repossession there’s no seller declaration and no recourse for a hidden defect. The inspection is your only source of information, and a reserve for corrections isn’t optional.
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