While conventional loans don't require a home inspection, it's better for the buyer to get one.
A home inspection reportmay show valuable information that will not appear in a home appraisal. If you don't opt for a conventional mortgage, you may be using an FHA or VA mortgage, which require less upfront money but have stricter rules on home and property condition. If there is something specific you want the inspector to evaluate, such as possible mold on the mezzanine or the lifespan of the home's HVAC system, let him know right from the start.
We wrote an article titled 21 Reasons Why You Should Undergo a Home Inspection to better understand why a home inspection is essential. You are encouraged to undergo a home inspection if you buy a home; however, the mortgage company may not require it. Even when you're using a conventional loan, you'll want to make sure that the electrical system has enough power to keep the appliances in the house running smoothly. If you are buying a home, you will have a due diligence period for a home inspection to take place before you close and take possession of the home.
If you're planning to use a VA loan to finance your new home, you'll need to complete a termite inspection of the VA loan. It's also a good idea to have your home sales contract state that your purchase is subject to a home inspection. For conventional, FHA and VA loans, it's a good idea to hire a home inspector to examine the home you're about to buy. Mortgage lenders generally require a home appraisal because they want to make sure the property is worth the amount you agreed to pay for it.
Termite inspections aren't necessary in every home purchase case, but it's still a good idea for your peace of mind and a solid investment. When the real estate appraiser visits the property, he may find a defect that leads the lender to request an additional inspection. The CL-100 wood-destroying insect inspection looks for damage caused to the structure by wood-destroying insects. After a home inspection, if a buyer decides to abandon a home repair negotiation without allowing the seller to deal with the items in the home inspection report, he risks losing the warranty money.
There are some circumstances in which your lender may require a home inspection, for example, if the pest control inspector or appraiser observes a structural defect.