Contractor Talk - Professional Construction and Remodeling Forum banner

1 - 11 of 11 Posts

·
Registered
Joined
·
3,920 Posts
Discussion Starter · #1 ·
I did a job last year, and the client (a buddy, at least I thought) said that the bank required him to insulate the attic before they would approve any loan. To me that doesn't make any sense. They were trying to get a loan to finance a 2nd story addition.

I can understand how the bank would require permiting information, and/or that the various permits get finalized. But a requirement regarding that the attic get insulated? This makes no sense to a hucklebuck such as myself. Hoping one of the G.C. guys could fill me in on any potential requirement that a bank would want in regards to finalizing a loan for a loan extension.
 

·
Particulate Filter
Joined
·
4,430 Posts
My guess is the bank wants an insurable home. Increasingly the bank or an affiliate is the insurer so they are protecting themselves from claim risk. Also, a home that won't be insurable will produce a loan that will not be sellable on the secondary market.
 

·
Registered
Joined
·
1,038 Posts
I'm in the home stretch of refinancing my home and after the appraisal was complete the bank came back to me with a punch list.Little items such as trim missing around a new window and a closet that wasn't painted and had no trim .:eek: Come on really:rolleyes:
 

·
Super Moderator
Joined
·
24,668 Posts
It's BS....

Your buddy trying to get his attic insulated on your dime...

All a bank wants to see is the draw signed off by the loan officer...
 

·
Registered
Joined
·
2,376 Posts
It seems unusual to say the least. Is your buddy trying to get you to insulate for free? If he were wanting free stuff, I think he would come up with a better story.
I'm not shy about talking to the bank. I usually touch base with them several times during a project. Banks are real touchy about trying to make sure they aren't stuck with a lemon. I feel that when I am in touch with them, they get to know me and feel more confident about the loans.
 

·
Registered
Joined
·
3,920 Posts
Discussion Starter · #7 ·
I don't want to get into the personal details, as we all have enough drama in our own lives. What I am trying to get from this topic is how do I go about proving his claim is a farce. He certainly will not give me the banks name.

At this point, I am trying to figure out where to go from here. I need to prove that he is lying. I just can't figure out how.
 

·
Banned
Joined
·
2,247 Posts
I don't want to get into the personal details, as we all have enough drama in our own lives. What I am trying to get from this topic is how do I go about proving his claim is a farce. He certainly will not give me the banks name.

At this point, I am trying to figure out where to go from here. I need to prove that he is lying. I just can't figure out how.
Tell him in a polite way that maybe there is a misunderstanding and you would like to speak with the bank, directly, If he won't comply then you have your answer and you know that something is wrong. A person who withholds information such as the contact name at a bank is raising a red flag. I would tell him that you need to see the order in writing.
 

·
Registered
Joined
·
257 Posts
I can't see why they would care if the attic or any part of the house was insulated for that matter. All banks care about is do you have good enough credit for the loan.
Not exactly true. The bank cares a lot about the property that's why they have it appraised. You pay for the appraisal but you can't get a loan without one. The appraisers job is to value the property but also to point out any deficiencies to the bank. If there is a clear violation, safety, code or otherwise, a lot of banks will not give you a loan until rectified.

When you get a loan from a bank they are in effect part owners. One of the first questions when applying for a second is "what are you going to use the money for"? An addition, "ok fine, we need to inspect property".

I have heard of banks asking for more. Ask your friend how the bank knew their was no insulation if he says it was the appraiser, he's probably telling the truth. If your still not sure ask to see the actual appraisal, the lack of insulation would be noted on the report.
 

·
Registered
Joined
·
917 Posts
I'd ask him for the bank contact info to make sure you are insulating to their standards so it sounds like you give a chit about it

Sent from my SM-G900V using Tapatalk
 
1 - 11 of 11 Posts
Top