Home Buying in Hickory>Question Details

Debby Bulloc…, Real Estate Pro in Hickory, NC

Have any of you run into to underwriters requiring a home inspection?

Asked by Debby Bullock-Benfield, Hickory, NC Fri May 10, 2013

If so, are they requiring all repairs (even minor ones like light bulbs) be repaired and reinspected prior to closing?

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Typically the lender never has but it is gravitating toward that direction because of issues of the property condition coming up later on. Likewise, investors are starting to require them to purchase loans. But to answer your question, Debby, no, I have not heard of any lender requiring minor repairs. They are looking for structural or safety issues. And as a concerned lender and realtor, you want to make sure your client is purchasing a structurally safe property so there should be no real issue. However, individually lenders can impose whatever they want but that is the purpose
0 votes Thank Flag Link Tue Aug 5, 2014
I've seen a Home Inspection mandated only on a 203K and a Termite Inspection mandated on a VA and 203K. In reality, it usually depends on how you write the contract - if you mention any reports in the purchase agreement, then the lender may ask for them because, by mentioning them in writing, they are now considered part of the contract. Therefore, when we write offers, we never state we will be getting any specific inspection. We also never check the box for any specific disclosure the seller has to fill out, such as the Seller Property Questionnaire. Lately, Fannie and Freddie have been asking for these if they are checked in the purchase agreement.
0 votes Thank Flag Link Fri Sep 20, 2013
Debbie,

FHA and Conventional loans do not require a home inspection. However, if the appraiser makes note of a deficiency, then the underwriter may require it to be fixed. This is at the discretion of the underwriter.

VA loans do require a "WDO" or pest inspection. Additionally, if there is a septic tank and/or well water, then inspections of those systems will be required also. Any deficiencies must be repaired before closing.

Let me know if we can help with your mortgage.

Ray Stevens
Branch Manager
239 481-9514
0 votes Thank Flag Link Fri Sep 20, 2013
Not yet! Aren't they overstepping their boundaries here?
0 votes Thank Flag Link Fri May 10, 2013
Nope but what buyer would be brave enough to buy a house without one these days with the price of repair labor?
0 votes Thank Flag Link Fri May 10, 2013
No I never have...appraisal, pest, radon even; but never an inspection.
0 votes Thank Flag Link Fri May 10, 2013
Rarely and when I do I tell the lender if you ever want another referral this is going to end immediately.
Unless your buyer is getting an FHA or VA loan there is no requirement for the lender to inspect or request a copy of the inspection report. You're stuck on this transaction but I'd let the loan officer no this is the last client they'll ever get from you because their sticking their nose where it doesn't belong and that you and your clients have too many options to play games with them Lenders have been and continue to be somewhat out of control, it's why I never hitch my wagon or risk my livelihood to any one lender but routinely have 8-10 I can turn to and if one starts to act up, I fire them immediately and make sure that future buyers avoid them like the plague.

Let's remember that when the day is done we give them business and not the other way round, they can create as many rules and hurdles as they want, if I don't like them they that's the end of our business relationship.
0 votes Thank Flag Link Fri May 10, 2013
This would imply that there has not been a previous inspection:
I cannot imagine a Buyer not doing an inspection, and FHA and VA loans, both hinge on the condition of the property.
Even if it is not an FHA or VA lender, it does not surprise me that they would request an inspection; if only for the Health and Safety items.
0 votes Thank Flag Link Fri May 10, 2013
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