What's an inspection all about?
Before you can get a mortgage, the bank will need to see that your house passed inspection. This means that you won’t have to borrow $30K more to fix plumbing damage that you didn’t know about. Basically, it puts everything on the table so there are no surprises.
Look for a company that can do both the structural inspection as well as a pest test -- those nasty termites can do a number on your walls. The bank needs to know that you don’t have bugs feeding on your beams.
If your potential home fails inspection, you will need to go back to the drawing board. Your choices will be to back out of the deal (you can do this if you put down a $1,000 option fee) or to renegotiate with the seller. If the seller agrees to fix the damage, you'll need to order a second inspection. If the seller doesn't agree to fix the damage, you can try to negotiate a lower rate of sale, since you'll be fixing it yourselves.
Once you pass inspection, get a report and keep it with your files needed for the mortgage. Congrats, you are on your way to being a home owner!
by The Nest Editors
7/2/08
See more:
buying a home,
Home Inspection,
Real Estate