We’re currently renting a house from my Dad’s partner, who’s now urging us to buy it. My husband and I are interested, but we’re facing significant credit issues and are working hard to improve our financial health. I’m self-employed, and my husband earns a decent salary. The house is valued at about $400,000, with a $180,000 mortgage remaining, and they’re asking for a $20,000 deposit, so we’d need to secure a $200,000 mortgage. However, I’m cautious due to my dad’s history of dishonesty and the fact that he’s done extensive, unpermitted work on the house. How should we approach this situation, and what steps should we take to ensure we’re making a wise decision?
I would be wary of buying a property from someone known for dishonesty, especially if the property has had significant unpermitted modifications.
If the property is truly valued at $400,000 and they’re offering it to you for $200,000, make sure to get everything in writing. You could potentially assume their mortgage or seek pre-approval based on the current terms.
@Gentry
Yes, we’re thinking of having a formal agreement drawn up to ensure everything is clear. It’s also part of my inheritance, so we want to make sure it’s handled fairly among all siblings.
From your description, it sounds like you’re not yet ready to buy a home, especially one with potential undisclosed issues. I recommend holding off on buying, improving your credit, and saving more for a down payment. Also, consider having a thorough inspection done to evaluate the extent of unpermitted work if you proceed.
@Hadley
We’re definitely not rushing into anything. We plan to consult with a mortgage advisor soon and will consider having a surveyor inspect the property to fully understand what we might be taking on.
Buying a house with significant, unpermitted modifications can lead to major issues down the line, especially if you plan to sell later. It would be wise to have a full home inspection and possibly consult with a structural engineer before making any decisions.
@Lennon
Thank you for the advice. We’re considering all options and will definitely invest in a thorough inspection to avoid future complications.