February 25, 2025 When purchasing or refinancing a home, lenders require the property to meet specific safety and structural standards. If certain repairs are needed, they can delay or even stop the loan process. Here are three common home repair issues that can put a loan on hold and how to address them.
1. Roof Damage or Structural Issues
A home’s roof and foundation are critical to its structural integrity. If an inspection reveals missing shingles, leaks, sagging areas, or cracks in the foundation, a lender may refuse to move forward until repairs are completed.
How to Fix It:
Roof – Hire a licensed roofing contractor to inspect and repair any damage. If the roof is nearing the end of its lifespan, a full replacement may be necessary.
Foundation – Cracks in the foundation should be evaluated by a structural engineer. Minor cracks can be sealed with epoxy, but significant shifting may require underpinning or leveling.
2. Health and Safety Hazards
Lenders often halt loan approval if a home has major health hazards such as mold, lead-based paint, asbestos, termite damage, or electrical hazards. These issues pose risks to occupants and require remediation before financing can continue.
How to Fix It:
Mold & Asbestos – A professional remediation company should assess and remove hazardous materials safely.
Lead-Based Paint – In older homes (built before 1978), peeling or chipping lead paint must be professionally removed or sealed with an approved encapsulant.
Electrical Issues – Hire a licensed electrician to update old wiring, fix faulty connections, or replace outdated electrical panels.
3. Plumbing or HVAC Malfunctions
A home must have properly functioning plumbing, heating, and cooling systems to qualify for most loans. Major leaks, outdated water heaters, or a non-working furnace or air conditioning system can stop the loan process.
How to Fix It:
Plumbing – Fix leaks, replace old pipes, and ensure water heaters and septic systems meet local code requirements.
HVAC – If the heating or cooling system is broken, a professional HVAC technician should repair or replace it before the loan is approved.
Final Thoughts
If you’re buying or selling a home, it’s wise to address these issues before they become deal-breakers. A pre-listing inspection can help identify potential problems early, giving you time to make necessary repairs before they delay your loan approval. Taking proactive steps can save time, money, and stress, ensuring a smooth home financing process.
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