Let it snow or no go?

As winter falls upon us here in San Luis Obispo there is the increasing realization that having a heater is a good thing. What many first-time homebuyers might not know, however, is that a functioning heat source is also REQUIRED for the purchase of a home. While there may not be an explicit call out for a heater in the standard real estate contracts, there is indeed a requirement for a permant and functioning heat source in the appraisal report. Without that appraiser's signature you stand a pretty bad chance of getting a loan to fund.

As a first-time homebuyer your purchase price may range a bit and be on the lower end of the spectrum and as a part of that you may start finding homes that don't have that necessary heat source or if it has the heater, it's not functioning. It's important to make a note of the heater issue in your decision to buy because while you may be cozy renting and singing Let it Snow buying a home without a heater is most likely a "No go," in as-is condition at least.

Don't despair, there are options for you to still land your dream house that doesn't have a heater that doesn't past the muster. Here are some ways to do it.

1. Decide if that house is really perfect for you and if you decide that you have to have it proceed...
2. Prepare an offer with a condition that requestst that the seller remedy the heater problem. This is the cheapest and easiest method for buyers.
3. Prepare the offer as normal but save some money back to have the repairs done prior to funding the loan. If this is the case you will also have to pay the appraiser to come back out to sign off on the condition for the repaired heater.
4. Prepare an offer as normal and split the cost with the seller to have the heater issue remedied.
5. Find a lender that can get you a loan without the heater being a required condition.
6. Pay cash.
7. *Win the lottery, prepare an all cash offer and put in the sweetest heater that you can find. You might even start out with the iPod inspired NEST Thermostat...