The Importance of a Home Inspection

HomeInspection

The Importance of a Home Inspection

Many buyers will choose to opt out of a home inspection to save some money or if it means getting an accepted offer on the home they are trying to purchase. However, waiving your right to a home inspection can be a costly mistake in the long run. Getting a home inspection can tell you the overall health of the home you are about to purchase, give you an idea of potential repairs, and allow for a home inspection contingency to be added to your contract.

What a Home Inspection Examines

A good inspector should examine certain components of the home you want to purchase and then produce a report covering his or her findings. Be sure to get a copy of the report, but also make sure you attend the inspection, too. You will be able to ask questions, get a firsthand explanation of the inspector’s findings, and see any problems the inspector finds in person. Inspections typically last 2-3 hours, so a little time now could help you get the full picture of your potential new home.

The inspector’s report should include:

  • whether each problem is a safety issue, major defect, or minor defect
  • which items need replacement and which should be repaired or serviced
  • items that are suitable for now but that should be monitored closely

Some common problems found during home inspections include:

  • Faulty wiring
  • Roof problems
  • Heating/cooling system defects
  • Plumbing issues
  • Poor home maintenance
  • Structural damage
  • Poor drainage around the structure, etc.

Download our home inspection checklist here

Home Inspection Limitations

A home inspection checks for visual cues to problems, so it cannot find all of a home’s defects. For example, if the home’s doors do not close properly or the floors are slanted, the foundation might have a crack. However, if the crack cannot be seen without pulling up all the flooring in the house, a home inspector cannot tell you it is definitely there.

In addition, most home inspectors are generalists. For example, they can tell you that the soil is too close to wood outside the home, but will recommend that you hire a pest inspector to check if the home has termites and the extent of the damages. Home inspectors also do not check for issues like site contamination, mold, and other specialized issues. Hiring additional inspectors will cost extra money, but if it is a serious enough issue, it is better to know about it now than later down the road.

Home Inspection Contingency

Home inspections can be used as a contingency in your purchase offer. If the home inspector finds significant damages and defects, the contingency allows you to back out of your offer, free of penalty, within a certain timeframe. These issues must be too expensive or too significant to fix in order for you to rescind your contract.

What Happens After an Inspection

What can you do once you have your inspection?

  • If your purchase contract has a home inspection contingency, you may choose to walk away from the purchase if the problems are too significant or expensive to fix.
  • You can ask the seller to fix any small or large problems. If they will not fix them, you can ask them to reduce the purchase price or give you a cash credit at closing so that you can fix the problems yourself. This is where a home inspection can pay for itself.
  • If these are not viable options (e.g. a bank-owned property that is being sold as-is), you can get estimates to fix the problems yourself, come up with a plan for repairs, and prioritize which repairs need to be done in order of importance.

 

Overall, a home inspection can give you a clearer picture of the health of the home you are about to purchase, signify any repairs that may be needed before or after you move in, and allow you to back out of a contract if repairs would be too costly. If there are no major problems, you will at least have the peace of mind in knowing that your new home is safe and move-in ready. You are making a large investment when you purchase a home; make sure you are getting the most value out of it.

 

 

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About Inlanta Mortgage

Headquartered in Brookfield, Wisconsin, Inlanta Mortgage is a growing mortgage banking firm committed to quality mortgage lending, ethical operations and strong customer service.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is an agency approved lender for Freddie Mac and Fannie Mae, FHA/VA, FHA 203K and USDA. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs.

Inlanta Mortgage was recently named a Top Workplace for a third time in 2015. Inlanta has also received the Platinum Million Dollar USDA Lender Award and has been recognized as a Top Mortgage Employer by National Mortgage Professional and a Top 100 Mortgage Banking Company and 100 Best Mortgage Companies to Work For by Mortgage Executive Magazine.

Inlanta Mortgage, Inc. NMLS #1016

Homebuyers Clueless?

Family in front of a house.

Are Homebuyers Clueless?

According to a recently released study by Zillow and published on CNNMoney, many homebuyers are clueless when it comes to mortgages. We want to help correct some of the misconceptions!

Minimum Down Payments Vary

Among Zillow’s survey findings, 31% of buyers don’t think it’s possible to get a mortgage for less than 5% down. Inlanta Mortgage offers a number of loan programs that require less than 5% down payment. FHA loans require as little as 3.5% down and USDA and VA loans have no down payment options. Inlanta Mortgage also offers traditional conventional mortgage loans with a low as a 3% down payment. In every situation, credit and underwriting requirements must be met. Contact a licensed Inlanta Mortgage loan officer to discuss which loan program is best for your specific needs.

Underwater Mortgages – Help is Available

Some 20% of homeowners surveyed didn’t know that underwater mortgages — those in which borrowers owe more than their homes are worth — can be refinanced into lower rate loans. Contact an Inlanta Mortgage loan officer to discuss your financial situation and to learn about your home refinancing options. Use our branch locator to find a loan officer is your area.

Bankruptcy, Foreclosures, and Short Sales

The Zillow survey found that nearly a third of homeowners are unaware that if they go through a foreclosure or short sale, they may not have to wait the full seven years before they can purchase a home again. Each loan program has specific requirements regarding past foreclosures, bankruptcies, and short sales. Contact a licensed Inlanta Mortgage loan officer to discuss your options – even if you have experienced a bankruptcy, foreclosure, or short sale. You may be pleasantly surprised by your options. Use our branch locator to find a loan officer near you.

Borrower Education

We understand that the decision to purchase or refinance a home comes with many questions. While no substitute for a licensed mortgage loan officer, our blog regularly includes home buyer tips,  industry news, and specific loan program information to support borrowers during this important time. Visit our blog regularly or visit us on Facebook, Twitter, LinkedIn, or Google+ for current news, events, and more.

About Inlanta Mortgage

Inlanta Mortgage is proudly celebrating its 20th Anniversary. Read more about our 20 year journey here.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.