| |
In this article we are going to explain a little bit about real estate home inspections and how they effect you and your mortgage financing.
First off before we get started let me clarify that an appraisal is not a home inspection and is no substitute for a home inspection. Home inspections are typically not required in order to get a mortgage however HUD, and most all qualified Real Estate professionals strongly recommend a home inspection from a qualified home inspector.
What is the difference between a home inspection and an appraisal?
An appraisal is an opinion of value, and is a very brief walkthrough of the property. A Home inspection is a through inspection and test of all of the homes mechanical and structural parts including, roof, structure, heating, cooling, plumbing, electrical etc...... This will reveal any hidden issues beneath the surface that you cannot see.
There are multiple types of inspections that you could get on your property:
You could get a home inspection such as we have discussed earlier, but depending on where your property is and the type of loan that you are getting you may be required to get a Termite Inspection to check for any termite damage or problems.
The next question is how much are these inspections going to cost me?
Home inspections can range from $150 up to several thousand for large homes. I would expect to pay $250-$450 depending on home size and location.
For a termite inspection they typically run between $50-$100.
What happens if there are problems with the inspection? If something comes back on the inspection there are 2 options:
1. Ask the Seller to Fix it.
2. Live with it and fix it after you purchase the property
What if you ask the seller to fix it and he says no?
Again you have 2 options
1. Live with it and fix it after you purchase the property
2. Legally back out of the agreement to purchase the home
If the underwriter requires any of the repairs to be made then they must be made by someone prior to closing.
The last possible inspection is a Survey.
A survey will show you the boundries of the land that the home is sitting on. There are several different types of surveys. Most states do not require surveys so they are not common, but are required in certain states such as Florida. There are several types of surveys, but the most common are the mortgage inspection, and the staked survey.
The mortgage inspection is where the land surveyor completes the survey and draws the property lines on a sheet of paper with landmarks etc. A staked survey is where the land surveyor completes the survey and puts stakes at the corners of property lines. Depending on the size of the land and the type of land being surveyed, costs can range from $250 and up depending on multiple factors.
That pretty much sums up the important aspects of the inspection process.
If you would like to get more informative mortgage shopping tips you should download our free guide The Mortgage Shopping Blueprint.
|
|
 |
