The Importance Of Home Inspections During Home Buying Process

The Importance Of Home Inspections During Home Buying Process

Gustan Cho Associates are mortgage brokers licensed in 48 states
This article is about The Importance Of Home Inspections During The Home Buying Process

The Importance Of Home Inspections should be addressed to all homebuyers. A home inspection is not required by lenders. However, it is highly recommended. The team at Gustan Cho Associates has not just heard but witnessed disasters by homebuyers who purchased a home without a home inspection done. The cost of a home inspection varies from $300 to $600. The cost is dependent on the type of property, the area, and the type of report. There are homebuyers who want to save $300 to $600 dollars and are exempt from the home inspection. We highly recommend home buyers have a home inspection done. It is an insurance policy. The money on an inspection is well worth every penny.

Realizing The Importance Of Home Inspections

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The best way to explain the importance of home inspections is by going over a couple of real recent case studies. One of our borrowers found a nice home in Bolingbrook, Illinois. The home was a short-sale home. The borrower was our client at Gustan Cho Associates. The loan officer assigned to the borrower recommended a home inspection. However, the buyer wanted to save the $450.00 fee and waived the home inspection.

Two weeks after closing, there was a heavy rainstorm that lasted days. During the rainstorm, the homeowners’ basement flooded. Boxes of unpacked goods and electronics were damaged by the flood. The homeowner spends a few thousand dollars fixing the cracked foundation that caused the flood. In this case scenario, if the homebuyer spends the $450 home inspection fee, this cracked foundation would have been discovered. The homebuyer would not have moved in until the cracked foundation was fixed. In the event, if the cracked foundation was not discovered by the home inspector, the homeowner would have been covered by the inspector’s insurance.

The Importance Of Home Inspections And Main Reason For Inspection

The main reason for a home inspection is to find out whether the home is secure, safe, and habitable. Homebuyers should make sure the home does not have any defects and everything is operational. The home inspector will inspect the interior and exterior of the home and evaluate every aspect of the property.

The inspector will complete a formal inspection report with photos and videos if necessary. The report will give the homebuyer the general condition of the home as well as any potential defect. After reviewing the home inspection report, the buyer can decide on whether or not to proceed with the sales transaction or cancel the real estate purchase contract. Defects in homes can be deceiving. The house may look perfect on the outside but the house can have hidden defects and issues that can cost thousands of dollars.

A home inspector can normally discover most defects in a house. If the home inspector needs an expert or specialist, he will note it in his report for further review.

Home Inspection During The Home Buying And Mortgage Process

What does home inspection mean during the home buying and mortgage process

Most home inspectors are referred to by real estate agents. Get the names of several home inspectors. Check their references and online reviews. Make sure they are certified and have been doing it for a long time. Average inspector charges anywhere between $300 to $600 dollars. Inspection costs are considered closing costs. It can be paid with a seller’s concession. Make sure they are licensed and bonded. This is important because in the event the home inspector makes a mistake such as missing a cracked foundation and the home floods after the closing after a rainstorm, the inspector is insured in the event the homeowner wants to make a claim against the inspector. The inspection is the very first step in the home buying and mortgage process. The inspection is ordered before a home appraisal. If anything is wrong with the inspection report, the homebuyer can cancel the real estate purchase contract. Therefore, there is no need to order a home appraisal.

What Does The Inspector Check

A home inspector is somewhat like a general practitioner. The inspector may not know the ins and outs of every aspect of the home. The inspector knows a little bit about everything. If an item seems like it can be trouble or having more issues, the inspector will note it on his report. He may note that he recommends a specialist inspect it further. This may require another inspector such as a roofer, well and septic inspector, or other specialists.

Home inspectors will assess the condition of the following components of a house:

  • Roofing: Check for leaks, missing shingles, longevity left
  • Basement/crawl spaces: Will check for cracked foundations, mold, seepage
  • Attic, including insulation: Will check for mold, leaks, and ventilation
  • Interior electrical: Will inspect for safety and fire hazard
  • Wiring: Will inspect for faulty wiring and hazards
  • Foundation: How solid is the concrete foundation, cracks, seepage, condition
  • Ceilings: Leaks
  • Interior walls: Structural sound
  • Doors: Is it operational and complete
  • Plumbing: Leaks and defects
  • Door frames: Is it aligned
  • Floors: Is it level and general condition
  • Heating and cooling system: Is it operational and safe
  • Windows: Do the windows work properly and are the latches functional

A home inspector will note if he recommends further inspection of the subject property. For example, if he sees signs of termites, he may recommend a specialized termite inspection. Additional inspections may be recommended.

Jammi Cash of Gustan Cho Associates is one of the top producers and is extremely knowledgeable about the home buying process. Jammi Cash said the following:

For more information about this topic or other mortgage-related topics, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.

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