Required Before Closing on Mortgage Loan
Most of us aren’t home builders. When looking for a home, we tend to focus on the home’s cosmetics more than the structure. Is the carpet clean? Are there enough bedrooms? Are the appliances working? When was the last time the exterior was painted? Are there enough outlets? These are all important. However, the structural, electrical, and mechanical systems of a house need to be evaluated. A state of disrepair in any of these areas can be quite costly.
In almost all situations mortgage lenders require a buyer to have a home inspection. This is scheduled after making an offer on the house and prior to the closing of the loan. A home inspection, completed by a professional inspector, assures the lender their investment is supported by collateral. Afterall, the bank holds the title to the house until after the loan is paid off.
What is a Home Inspection?
A home inspection is different than an appraisal. An appraisal gives the lender an idea of what the market value of a home is. A home inspection addresses the quality of the home by looking for problems. If the inspection finds a major structural defect that is costly to repair, the value of the home could greatly decrease and the lender will most likely not offer the buyer a mortgage on this home in poor condition. That is why most sales contracts are contingent on a home passing the inspection. Passing a home inspection is a safeguard to both the buyer and the lender.
Over the years I have developed a network of very qualified home inspectors who do a thorough job of ensuring that your investment is sound. I’ll be happy to refer one of these home inspectors to you when we reach this part in the home buying process.
10 Other Must-Know Things About Home Inspections:
Nebraska does not require licensure for home inspectors. However, I have years of experience working with the best in the area and will refer you to the one I trust.
Most inspections cost between $300-$500.
Inspections can last from 2-4 hours.
Home inspections do not typically cover examination of in-ground pools, searching for wood destroying insects, like termites; inspection of septic systems or assessment of trees. You must arrange a separate inspection for each of these. If needed, I can make referrals.
The inspector will examine structural elements, the grounds, the roof, exterior surfaces, the attic, interior plumbing, the electrical system, appliances, the heating and cooling systems, including the fireplace(s), the basement and garage.
Home inspections are non-invasive. The inspector does not pull up shingles, drill holes in walls, etc.
The inspector will also look for any leaks and try to find the source of any odors.
Health and safety issues will be noted in the inspector’s report as will any moisture or drainage issues.
The buyer pays for the home inspection.
The inspector will issue a report for your review. Be sure to ask about anything you do not understand. A copy of the report will be sent to your mortgage lender.
Feel free to learn more about home inspections at National Association of Certified Home Inspectors and National Association of Home Inspectors.
Are you ready to get to the home inspection stage of home buying?
Megan Owens, Realtor
“Delivering extraordinary care for extraordinary clients.”
Berkshire Hathaway HomeServices Ambassador Real Estate
Phone | 402-689- 4984 Email | Megan.Owens@bhhsamb.com
©Copyright. May 2016. Megan Owens.
All Rights Reserved.