Home Inspection During Mortgage Process Is Not Required By Lenders
This BLOG On Home Inspection During Mortgage Process Is Not Required By Lenders Was UPDATED On June 7, 2017
A new home purchase is most people’s biggest investment.
- Buying a home is not like buying a car or other high ticket item.
- A new home is where the new homeowner will be raising their children and family.
- Buying a new home is a process.
- After the home buyer finds the home they like to purchase they then go through the mortgage application process
- The mortgage application process starts once the real estate purchase contract is signed by both parties.
Home Appraisal Versus Home Inspection
A home appraisal is mandatory when buying a new home. Home Inspection During Mortgage Process Is Not Required By Lenders:
- Home inspections are not required by lenders.
- A home appraiser does not inspect the home.
- Appraiser’s only duty is to analyze the subject property and its surrounding territories and come up with a value of the subject property.
- An appraiser will only note what he sees on his appraisal report such as worn roof, damp basement, peeling paint, shingles missing from roof, broken fence, old appliances, and other visual factors.
- An appraiser is not qualified on inspecting the condition of the subject property with regards to condition.
- The appraiser is not required to inspect the subject property on the condition.
Home Inspections Not Required By Lenders
Most lenders do not require home inspections.
- Home inspections are paid for by the home buyer and should normally be done prior to the appraisal.
- The reason home inspections are recommended prior to the appraisal is in the event if the subject property has major issues and the home buyer needs to cancel the transaction.
- It will save the home buyer the appraisal fee.
Home Inspection Recommended
Not all home buyers hire a home inspection.
- Most home buyers feel that just because the home is a newer home that there will be no issues with the home.
- I strongly disagree with that belief.
- A newer home can have the same issues like an older home.
- There are cases where an inexperienced builder built the home and used unlicensed trades to do electrical work, plumbing work, and heating work.
- Most of the plumbing, electrical, and heating work is normally covered by drywall and hard to detect whether the proper materials were used.
- A home inspector has the right tools and knowledge to detect defects with wiring, plumbing, and heating systems.
How Much Does Home Inspectors Charge?
A home inspector normally costs $300, depending on the area and that money is money well spent.
- A home can have major foundation problems, electrical problems, structural problems, plumbing issues, and other hidden problems that could cost the homeowner thousands of dollars.
- Having a home inspection done is a great insurance policy and money well spent.