ABOUT FHA Loan Home Inspection

Home Inspections for Homebuyers

 
Why a Buyer needs a home inspection:

Home inspections are not appraisals. A FHA Loan home inspection gives the buyer more detailed information about the overall condition of the home prior to purchase. A property appraisal provides an estimate of a property's market value. Lenders require appraisals on properties before loan approval because they do not want to loan more than the property is worth. Appraisals benefit lenders; home inspections benefit buyers.

When you make a written offer on a home, you should insist that the contract states that the offer is contingent (dependent) on a satisfactory (to the buyer) home inspection conducted by a qualified inspector. If you are satisfied with the results of the inspection, then you can proceed with your offer or make a counter offer if the results are not satisfactory.

As the buyer, it is your responsibility to carefully select a qualified inspector. The following sources may help you find a qualified home inspector:

• FHA Inspector locator — find an inspector who is FHA-qualified.
• State regulatory authorities — some states require licensing of home inspectors.
• Professional organizations — may require home inspectors to pass tests and meet minimum qualifications before becoming a member.
• Phone book Yellow Pages — look under "Building Inspection Service" or "Home Inspection Service".
• The Internet — search for "Building Inspection Service" or "Home Inspection Service."
• Your real estate agent — most real estate professionals have a list of home inspectors they recommend.

The bottom line: As with a home inspection, you may decide to test for radon or lead before or after signing the contract as long as your contract states that your purchase depends on your satisfaction with the test results. Remember—spending hundreds of dollars on inspections now may save you thousands on costly fixes in the future!