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Hire a Home Inspector When Purchasing a New Home

Hire a Home Inspector When Purchasing a New Home

True or False: A home inspection is not required when purchasing a home.

And the answer is…True! In many states a home inspection is not required by the bank in order to be approved for a mortgage, however in most cases, an appraisal is.
What’s the difference? An appraisal determines the value of a piece of property whereas an inspection’s purpose is to uncover issues which may not have been disclosed by the seller or discovered during previous walk-throughs.
Many buyers, especially those who are already concerned about closing and moving costs, down-payments, attorneys, furniture, etc. look at the cost associated with an inspection (typically $400-$600), and decide to forego the additional financial “burden.” Unfortunately, opt-ing out of this nominal investment may result in a bigger expenditure in the long-run, even in new homes.

Unless you are purchasing an existing home “as-is,” sellers are typically required to disclose known issues to the buyer. Unfortunately, many times new home construction is assumed to be perfect, an assumption which can not only be false but also very costly. For this reason, we recommend home inspections as you prepare to purchase the home which is being constructed for you.
The first inspection should occur after the studs have been placed but before the drywall goes up. This inspection will discover items such as faulty electrical wiring, plumbing and even the lack of insulation.
Wow. Our advice? Don’t be left out in the cold during the winter because you failed to have this first – and very important – inspection performed.
The second inspection is scheduled after all the finishes are installed, but prior to the closing. This second inspection digs in deeper, however, and ensures that not only are you making a sound investment but also a safe one.
Many eager home buyers will often walk the property of their new construction during the process, and inevitably an issue or two will arise which you will want to discuss with the builder. If you are not local to your new home construction – and even if you are, it is highly recommended that you add a new home inspection contingency to your contract.

Our advice: Add any items discovered during this inspection to your builder’s punch list, and do NOT make your final payment until these items are rectified. Items which are put off until after the closing can easily be forgotten by the builder, and unfortunately forgotten items may easily “fall out of the warranty period” when they are brought back up again.
Call us to today for New Home Inspection or with any questions you may have. Call Today 941-448-5096

Homebuyers cannot yet get the lower FHA rate

WASHINGTON – Jan. 9, 2015 – U.S. Housing and Urban Development (HUD) Secretary Julián Castro officially announced that the Federal Housing Administration (FHA) would reduce the annual premiums new borrowers pay on an FHA loan by a half percent.

Homebuyers cannot yet get the lower FHA rate, however.

The new annual premium prices are expected to take effect towards the end of the month, according to Castro. FHA must first explain the new pricing structure to FHA lenders in a mortgagee letter, which it says it will issue shortly.

Castro says the change is projected to save more than two million FHA homeowners an average of $900 annually and spur 250,000 new homebuyers to purchase their first home over the next three years.

The change reflects the improved economic health of FHA’s Mutual Mortgage Insurance Fund (MMIF). In the wake of the nation’s housing crisis, FHA increased its premium prices to stabilize the health of MMIF. FHA’s recent annual report to Congress showed that the economic condition of the agency’s single-family insurance fund continues to improve, adding $21 billion in value over the past two years.