Why would a mortgage company do a property inspection?

What is the purpose of a property inspection?

The main purpose of a home inspection is to give you the information needed to make an informed decision on the purchase. Most home inspectors focus on the major defects that will cost the buyer a lot of money above the purchase price to repair.

Do mortgage companies require inspections?

Mortgage lenders do not require a home inspection to obtain a home loan. You are encouraged to get a home inspection if purchasing a home; however, the mortgage company will likely not require one. Mortgage lenders generally will require an appraisal and a wood-destroying organisms report.

What does a mortgage inspector look for?

A home inspector will look at things like a home’s foundation, structural components, roof, HVAC, plumbing, and electrical systems, then provide a written home inspection report with results. A home inspection generally takes two to four hours, but may take more time depending on the size of the house.

Will a bank give a mortgage without an inspection?

The short answer is no, inspections are generally not required when using a mortgage loan to buy a house. But lenders almost always want to have an appraisal done before they will approve a home loan, in order to determine how much the house is worth.

Can a mortgage company inspect your home?

The answer is that your mortgage company is permitted to inspect your home if you fall behind (the technical term is “to default”) on your mortgage loan. I’ll bet you that right in your mortgage papers, it says that they’re entitled to inspect the property.

IT IS INTERESTING:  Do all lenders have the same rates?

Do conventional loans require inspection?

Conventional loan home inspections

Although conventional loans don’t require a home inspection, it’s in the buyer’s best interest to get one. A home inspection report can turn up valuable information that won’t show up on a home appraisal.

How long does a house inspection take?

It depends upon the size of the home and the number of rooms. An average inspection takes about 2-2½ hours (1-1½ hours for a condo). The time is well-spent considering there are more than 500 components in the average home.