Buying a Unique property can come with financing hardship.
Thinking of buying a romantic rustic Log home? A Home with acreage? A house with a large workshop? Or what about a fixer upper?
All of these types of properties can cause challenges when it comes to the mortgage financing.
Finding the right lender will take extra time, may require large down payments or may not be suitable at all to some banks.
For example; It is a general requirement that If the property you are purchasing has more than 5 acres the lender will request that the appraiser adjust the value of the property to reflect only the house and 5 acres. You will be required to come up with the difference in cash to close.
If the home has a large outbuilding that would not be considered a typical garage the lender will request that this be deducted from the property value or purchase price requiring you to come up with the difference in cash.
If buying a home that is described as being a Fixer upper the bank may require a quote for the repairs and then will holdback those funds from the mortgage until the work is proven to have been completed. (note: it is possible to include the extra renovation money into the new mortgage through the mortgage default insurer)
Make sure you are preapproved and before presenting your offer and send your broker a copy of the MLS listing for their review so they can advise you on the amount of time required for financing and any pitfalls that may be present or a strategy to make sure the funding of the mortgage happens smoothly.