If you’re thinking about acquiring a real estate asset, you may need to communicate with a bank to receive the proper funds for the initial purchase. Although, did you know, banks require a site assessment before they even consider giving you a loan? If the answer was no, this blog can help you identify why this is necessary! It may seem like a step without justification, but we’ll explain why it’s essential for banks to do so.
The biggest reason revolves around loans and if you, as a property owner, will be able to pay them back in the long run. Loans can be a very hefty amount of money, one that a bank isn’t willing to give up unless they’re confident you’ll get the money back to them in due time. Depending on the conditions of the property you’re buying, it can sway their decision one way or the other.
The goal of a Phase I Site Assessment is to review the property and identify any indicators of contamination present. With our team here at Karl Environmental, a Phase I Real Estate Site Assessment would include an on-site inspection, photographs of the property, interviews with individuals who have owned the property, and more. Depending upon the conditions found, a Phase II Site Assessment may be plausible. A Phase II Site Assessment would specifically collect and analyze material related to environmental conditions, along with possible remediations if contamination is found.
If more problems are identified, this can directly affect your ability as the property owner to handle them, ultimately leaving you at fault for damages. This could extremely limit your ability to pay back the loan when you’re already dealing with a wider problem at hand. The problem may take up too much time, energy, and finances. This places banks in a tough spot if they lose the money, which can impact their services and other clients they have.
If you’re considering the purchase of a major property, ensure the problems are minimal or you can handle them. Luckily enough, our team of professionals can help you out before you take the next step! Be sure to contact us and check out our service page regarding real estate site assessment to learn more about them.
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