When obtaining a home loan, you’ll receive two important documents from your lender: a loan estimate and a closing disclosure. On the surface, these documents are very similar, but they both serve different purposes. Here’s what you need to know about the differences between these two forms and what each means for you:
What is a Home Inspection?
It’s important for buyers to know what to expect when purchasing a home, as it’s one of the biggest investments they will make in their lives. An inspection will help you, the seller, know what to expect from your home in terms of future repairs, structural issues and improvements that need to be made before a buyer decides to buy.
Why You Should Get a Home Inspection
Unlike a home appraisal, an inspection doesn’t put a value on the home. Rather, it tells the buyer what issues may or may not be prevalent in their potential new home and if they should purchase the property and what KC home loan would work best for them.
The inspector can give insight into the type of maintenance that will need to happen for the home to stay in good condition. After the inspection is finished, buyers will have a much clearer understanding about the condition of the home they would like to purchase. If the home is in good shape or just in need of some minor repairs, a good report can secure the sale of a home for a seller.
Who Performs Your Home Inspection?
A licensed home inspector is normally hired by the homebuyer but can also be hired by the seller for a pre-sale inspection. Depending on the situation, buyers may want an independent home inspection by a professional inspector before they make an offer on the property. Some contractors perform home inspections, but it’s a good idea to use an actual licensed inspector with a verified and good track record.
What Does a Home Inspection Include?
A complete home inspection is an evaluation of the home’s condition. They are usually performed during real estate transactions but can be done at any time. Inspections can last anywhere from 2 to 4 hours and can cost between $200-500. Inspectors will typically review the following aspects of a property:
- Heating and cooling systems
- Electrical and appliance systems
- Exterior and interior walls
- Chimney, doors and windows
Items that are generally not part of the inspector’s review include:
- Cosmetic features
- Swimming pools, hot tubs, and spas
- Systems such as telephone, cable TV, alarms, or lawn watering devices