va loan house inspection

The Ultimate Guide to VA Loan House Inspections

Purchasing a home is likely one of the biggest financial decisions you’ll make in your life When you’re getting a VA loan to buy a house, you want to make sure you fully understand the condition of the property before closing on it This is where VA loan house inspections come in.

Inspections help buyers learn about any defects or issues with the home before they finalize the purchase. Read on to understand everything you need to know about house inspections for VA loans.

What is a House Inspection?

A house inspection is an in-depth analysis and evaluation of the condition of a home. A qualified home inspector will examine all aspects of the property—from roof to foundation and everything in between—to identify any flaws, needed repairs, safety issues, or problems.

The inspector provides the homebuyer with a detailed inspection report outlining any concerns discovered during the inspection. This allows buyers to gain a comprehensive understanding of the home’s condition before purchasing it.

Inspections are intended to alert buyers to defects that may not be noticeable to the untrained eye. Identifying these issues ahead of time allows buyers to negotiate with sellers, request repairs, or walk away if major undisclosed problems are uncovered.

Key Takeaways:

• A house inspection is a detailed examination of the condition of a property.

• Home inspectors identify issues and provide buyers with an inspection report.

• Inspections help buyers learn about problems before purchasing the home.

Are House Inspections Required for VA Loans?

VA loans do not require a house inspection. VA loans only require an appraisal to determine the property’s value and confirm it meets VA minimum property requirements.

However, while not mandatory, a professional house inspection is highly recommended for VA loan borrowers by lenders and real estate professionals. VA appraisals do not provide the same level of detail as a full inspection.

Without an inspection, serious but hidden issues like infestations, faulty wiring, or roof damage could go undetected. For most buyers, the cost of an inspection is money well spent for peace of mind.

• House inspections are optional for VA loans but highly recommended.

• Inspections give more detail than required VA appraisals.

• Home inspections help buyers avoid purchasing homes with hidden issues.

VA Appraisal vs. House Inspection

VA appraisals and house inspections evaluate properties in different ways. Here’s an overview of how they differ:

VA Appraisal

• Assesses market value to determine loan amount
• Confirms home meets VA minimum property requirements
• Identifies safety hazards, structural issues
• Does not provide comprehensive condition details

House Inspection

• Does not determine property value
• Does not confirm VA loan eligibility
• Provides in-depth analysis of all home systems and features
• Identifies issues not visible to the untrained eye

While VA appraisals look for red flags, inspections offer a much deeper analysis. Inspections also include checking plumbing, electric, HVAC, and appliances. Only inspections can provide buyers with a complete picture of the property’s condition.

Key differences:

• VA appraisals confirm eligibility and value; inspections assess overall condition.

• Inspections provide much more detail on all home systems and features.

• Only inspections give buyers a comprehensive analysis of the property.

When to Get a House Inspection for a VA Loan

Most experts recommend scheduling a house inspection as soon as possible once your purchase contract is accepted. This allows you to identify potential issues early in the process.

If the inspection uncovers deal-breaking problems, buyers can terminate the contract and walk away before paying for appraisals and other closing costs.

Buyers should also try to be present during the inspection whenever possible. This allows you to follow along with the inspector, ask questions, and gain familiarity with the home.

Tips for inspection timing:

• Schedule inspection immediately after the seller accepts the purchase contract.

• Being present during the inspection helps buyers learn about the home.

• Early inspections allow termination if issues are found, avoiding added costs.

Home Inspection Process and Procedures

Home inspections involve detailed visual examinations of all aspects of the property. Here is an overview of what buyers can expect during the inspection:

• Inspector will evaluate all interior and exterior areas.

• Attic, crawl spaces, basement will be inspected.

• Inspector will operate plumbing fixtures, electrical switches, garage doors.

• Heating, cooling, ventilation systems will be tested.

• Appliances like stoves and dishwashers will be checked.

• Inspector will examine foundation, roof, windows, doors, and more.

• Inspection takes 2-3 hours on average depending on home size.

• Buyer will receive a written report summarizing findings within a few days.

Knowing what to expect removes surprises and ensures buyers get the most out of the inspection. Ask your inspector questions during the inspection and review the report thoroughly afterward.

Home Inspection Cost

Home inspection fees vary based on factors like your location and the size of the home. According to the U.S. Department of Housing and Urban Development, costs typically range from $300-$500. Additional services like sewer scope inspections or mold tests add to the total cost but may be advisable under certain conditions.

When reviewing estimates, consider:

• Inspector qualifications and experience

• Services included in the inspection

• Any additional testing costs

• Using a VA-approved inspector for familiarity with standards

While inspection fees may seem high, uncovering serious issues before closing on a home makes an inspection well worth the cost for most buyers.

Hiring a Qualified Home Inspector

Not all home inspectors offer the same level of service. Consider these tips to find one you can trust:

• Ask your real estate agent or lender for inspector recommendations.

• Search inspector directories from professional groups like ASHI or InterNACHI.

• Verify required state licenses and professional certifications are up to date.

• Review sample reports to evaluate thoroughness.

• Ask about their experience with VA property requirements.

• Compare costs among multiple qualified inspectors.

Take time to research inspectors’ credentials, training, and VA loan experience. This helps ensure you receive a quality inspection and report.

What Does the Home Inspection Report Include?

The inspection report provides buyers with comprehensive documentation of the home’s condition. Quality reports include:

• Overview summarizing inspection findings

• Detailed descriptions, images, and locations of any issues

• List of areas inspected (roof, foundation, systems, etc.)

• Explanations of any limitations in accessible areas

• Inspector’s recommendations for repairs or further evaluation

• Summary of any life/safety issues requiring immediate correction

Closely reviewing the inspection report gives buyers a complete profile of the property and list of items needing correction. Be sure to get clarification from inspectors on anything you don’t understand in their reports.

When sellers make repairs, ask for documentation showing work was completed by qualified professionals.

What if Problems are Found During Inspection?

If issues are identified during the home inspection, buyers have several options:

1. Request Seller Repairs: Ask the seller to correct issues identified in the inspection report, especially larger items. Most purchase contracts have inspection clauses allowing this. Sellers can make the repairs, hire professionals themselves, or offer credits. Ensure all repairs are completed properly and ask for documentation.

2. Negotiate: Based on inspection findings, buyers could negotiate closing costs, the purchase price, or other terms of the contract. A lower price may offset the cost and hassle of repairs.

3. Walk Away: For major issues, buyers may choose to terminate the deal if sellers refuse repairs. Buyers should get inspection and financing contingencies in the contract to allow this. Earnest money should be refunded in this scenario.

4. Take Responsibility for Repairs: As the new owner, buyers may opt to take on some repairs themselves, especially minor ones. This avoids contract disputes but adds costs after closing.

Each of these options has pros and cons to weigh with the help of real estate and legal professionals. Don’t feel pushed into closing a deal on a home you no longer feel good about.

Key Takeaways on Home Inspection Findings:

• Ask sellers to make repairs for any significant issues found.

• Renegotiate contract terms if problems hurt the home’s value to you.

• Be ready to walk away from deals if undisclosed major flaws are uncovered.

• Taking responsibility for repairs yourself is an option but adds costs.

Can a Home Fail a VA Inspection?

Unlike appraisals, inspections themselves don’t result in pass/fail outcomes. However, issues uncovered in the inspection report could potentially cause a home to fail the appraisal if they do not meet VA minimum property requirements.

For example, an inspection might reveal:

• Structural instability
• Major water intrusion issues
• Faulty electrical wiring
• Heating system not functioning

If uncorrected, these could cause a home to fail the VA appraisal, putting loan approval at risk.