Before your lender will close on a loan for a house you want to buy, the lender will require some inspections on the home. If you have never bought a home, you might wonder why this is required, and if this requirement offers any benefits to you. There are several key benefits this requirement offers to you, and there are several reasons your lender will make sure this is completed before you close on the house.
Benefits this offers to you
The main benefit you will receive by getting various inspections completed on your home is peace of mind. You will know that your house is in good condition and that it does not have major problems with any of the areas that were inspected. For example, many lenders require a termite inspection. This inspection helps you know if there is a termite problem in the house, or if there has ever been one. If termites are found, the seller must pay to eliminate them. If termites once existed in the house, the inspector will find signs of infestation. When there are signs of past infestation, the inspector can let you know if there is any major damage from the bugs.
Reasons your lender requires inspections
The main reason lenders require inspections is to protect themselves. When a person borrows money to buy a house, it is often a large amount of money. The lender is loaning this money with the intent that the borrower will repay it. If the borrower runs into major problems with the home he or she purchased, he or she may experience financial hardship. The borrower might not be able to afford to remedy the problem, or the borrower might use all the money he or she has to fix the issue, and this might leave the person without the ability to repay the loan.
Because of this, lenders want to make sure the houses they loan money for are in great condition and are free of major problems. In addition to requiring a termite inspection, your lender might also ask for a septic inspection, roof inspection, and foundation inspection. You are also free to hire a home inspector to look over areas that were not covered in the required inspections.
If you want to purchase a house, you should be prepared to pay for these types of inspections. To learn more about the home-buying process, visit a real estate agent in your city.Share
11 May 2017
I have never been one of those people who loves to shop, which is probably one of the reasons I had such a difficult time choosing a house. I wanted to find the perfect little place for my family to grow up, but that was easier said than done. I knew that I wanted to work with a professional who could really grasp my vision and put me in a place that I would love, so I started focusing on finding the right professional. After a brief search, I was able to find a team of real estate brokers that I knew would do a great job. This blog is all about choosing the best real estate agent for your personality.