Your home loan can be delayed for carbon monoxide detectors

We recently wrote about a new law in Washington state that requires all home sellers to install carbon monoxide detectors. Well, sellers and buyers better pay attention to this law if they don’t want home purchase loans to be delayed.

Carbon monoxide (CO) detectorFrom our recent experience, loan appraisers are now looking for carbon monoxide alarms to be installed. If they don’t see any, they will call it out on their appraisal report to the bank. Once the bank sees the report, their underwriting department will delay loan approval until the appraiser is provided with proof that CO detectors have been installed. Some appraisers will accept photos that show them installed, while others will need to visit the home again to verify. You may even be charged an additional fee for the second visit by the appraiser.

Sellers, if you don’t want to have delays for your buyer’s purchase loan, make sure that you have installed carbon monoxide alarms prior to the appraisal.

Buyers, if you get into contract to purchase a home, make sure that you check for the existence of carbon monoxide alarms during your initial visits and inspection. If the home does not have them, have your agent hound the seller and their agent to get them installed prior to the visit by your appraiser.

As a reminder, alarms have to be installed: 1) outside of each separate sleeping area and in the immediate vicinity of each bedroom; 2) on each level of the dwelling; and 3) in accordance with manufacturer’s recommendations.