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4 Common Loan Financing Issues When Buying an Old Home

Written by Posted On Wednesday, 06 November 2019 13:29


Buying a home is meant to be an exciting time in your life. This is, after all, the American dream. Having a place to call your own is quite liberating. It is a place that you can really feel comfortable and involved with. At the same time, it is also a huge investment. You will want to be sure that you are purchasing the home that you will fall in love with in the end. This takes a great deal of time and patience throughout the process. If you have found an older home that you fall in love with, it is time to make an offer. However, keep in mind that some work may need to be done that does not always come with financing options.

Upgraded Electrical Work

Electricity has greatly evolved in the past few decades. If you buy an older house, you will want to be aware that the existing wiring that is in place may be outdated. This could present problems down the road, so it is often best to get the entire system updated. This is not always easy to finance and cannot generally be added to the cost of the home loan.

Plumbing Issues

Older homes also have some unique plumbing issues from time to time. This is certainly not something that will keep you from enjoying your new residence, but it is something to take into account. You will want to replace old pipes and drains in order to increase the effectiveness of your plumbing throughout the home. Plumbing issues can easily lead to mold infestations that can bring a headache to the closing timeline. 

Roof Replacement

This is something that cannot be avoided. Roofs only last for so long, so there is a good chance that an older home will require a new one not long after you move in. The reason why a home may look like it has a great asking price is because in the inspection there is a note that it needs a new roof. Depending on the type of loan you are getting, you may need to replace the roof to go ahead with the purchase. This may mean you need a second home repair loan or a different financing option. There are many professional roofing contractors in the area that can help you with the estimates as you work to repair this home or go with another one.  You may want to consider having the seller raise the asking price in order to cover the cost of the new roof.

Air Conditioning and Heating

New HVAC units can be expensive. At the same time, you want to be comfortable in your new home. This may call for a second repair loan. Either the exiting unit will need to be fixed, or you will want to get a new one. Remember to look into a home warranty to help cover you in the future as well.

These are just four of the issues commonly impacting older homes that may present some initial financing difficulties for you. Since it is not always possible to save up money for a down payment and these needed repairs, you will need to look for some creative options. Just be patient. Where there is a will, there is a way.

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Kara Masterson

Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max. Kara is the youngest of four. She has two hilarious brothers and one beautiful sister. She also is the aunt of 4 crazy little girls that she loves more than anything!! Kara is not yet able to be a mom, but she loves being around kids and being like a second mom to her nieces. She dreams of the day that she can start her own little family.

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