What You Should Know About a FHA Inspection Before You Sign on the Loan

An FHA inspection is a thorough examination of a home that will assess its safety, value, repairs, and overall condition. It also makes certain the house is in good living condition while also meeting the FHA minimum housing standards. A buyer can rest assured that the house they are buying is safe from fire, flood, earthquake, hurricanes, and other natural disasters that face the community. The FHA inspects not only a house but an entire community.

Before an inspection, there are several steps the inspector takes to assure that everything is satisfactory and in proper working condition. First, an FHA inspector performs an evaluation of a house, community, or area of property. Then the inspector conducts numerous tests on the property to assure that everything will pass inspection. The inspector may also conduct special inspections that address certain concerns that come up more frequently than others. All this ensures that the entire community or area will pass inspection.

An FHA inspector cannot just assume that a house, community, or region is passable. Every home or region is unique, so all inspections are custom fit for the region. A home must have regular maintenance performed on its foundation, roof, appliances, and wiring. The foundation must be in good condition, which includes the ability to withstand extreme weather, such as earthquakes and hurricanes.

Roof conditions should also be inspected. If the roof is showing any signs of damage, repair, or deterioration, the inspection will let the lender know before closing the deal. The roof is an important part of a house, because it protects the rest of the interior from natural elements. If a house catches fire, or suffers some other major catastrophe, the roof may be able to save the day. So a FHA inspector will want to examine a house’s roof.

Home appliances also need to be inspected to make sure they are in good working condition. These include water heaters, washers, televisions, computers, stereos, air conditioning systems, dishwashers, and refrigerators. If any of these items are found to be faulty, the inspectors will let the borrower know right away, so it’s always best to get them inspected by the agency. A good FHA inspection will not only ensure that a home or apartment has no obvious hazards, but also make the loan process smooth by letting the borrower knows that there are no defects with the property.

After the inspection is complete, the inspector gives the buyer a report detailing what was found. This is the final step before closing. It typically includes things like how much money was lost due to damage, how many needed repairs, and how much needed replacement cost. The buyer will sign the document if he agrees to the terms. If he doesn’t agree, he can go back to the lender and ask for a re-inspection.

In order to save money, it’s smart to get several home inspectors. Home inspection services charge a fee for the inspection itself and for additional consultations on other areas of concern. When several people examine a property, the chance of finding similar problems is higher. Also, when the inspections are done at different times, lenders have more opportunities for negotiate lower rates on loans.

Although you may think an FHA inspection won’t really matter, your future lender may view your credit score in a different way. Even if you had great credit before your home was inspected, your lender might view your score differently after it’s been docked with a few mortgage notes. And even if your credit is excellent now, a foreclosure or bankruptcy could impact your loan in a negative way. It’s always best to make sure your FHA loan doesn’t fall into such a scenario.