How to Avoid the Mortgage Process Pitfalls: Building to Code - Part 2

The mortgage qualification process has many complex components.  Part 1 of this series discussed how to avoid loan denial as the result of a change in one’s credit.  It is the buyer’s responsibility to maintain their credit.  The good news is this segment pertains to the importance of a house meeting code to qualify for a loan.   One of the undeniable benefits of new construction vs. resale, is in the case of new construction, it is the builder’s responsibility to make sure the home meets code.  While the burden does not fall on the new homebuyers shoulders, it is important to be aware of this process so that a buyer knows what is happening during the inspection and is aware of the possibility of delays as any required changes are made to the home.

All lenders require a home be inspected prior to closing and that it meet the county’s dictated building code.  This lessens the lenders liability for potential hazards and issues.  The Veteran’s Administration is particularly stringent with their home inspection prior to a VA loan closing.   The inspector will walk the home looking and testing for things the average buyer might not be knowledgeable of.  They will check the foundation, framing, plumbing, wiring, etc. to make sure that the home is built to code and is safe for its future inhabitants.

Builders always strive to build to code: it saves them time and money.  But do not be alarmed if your inspection generates a small “to do” list of things needing to be addressed before the lender will approve your loan. It is very common and typically easy for the builder to correct. Keep in mind they are in the business of selling houses and they want happy homeowners.  They know how to best address any problems and will work to close your home as quickly as possible. And you will have the peace of mind knowing that your house meets code.

Shop Charleston’s great selection of new homes, constructed by quality builders that care about you and your future home!


Related Articles
Avoiding Mortgage Pitfalls: Part 1 – Fluctuation in Credit
Avoiding Mortgage Pitfalls: Part 3 – Are You Getting What You are Paying For
Avoiding Mortgage Pitfalls: Part 4 – Importance of Timing

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