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Re-Inspection: The Insurance Loophole

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Loophole may not be the most accurate term to describe a scenario you may happen up during your home buying experience. However, we’ve heard many clients call it that – a loophole offered by the insurance company based on the re-inspection. Here’s what you need to know if you ever wander into this territory.

The scenario you may run into

After getting a home inspection report you find out the house you want to buy did not pass the four point inspection. Now you need time to get the issue(s) fixed while also trying to stick to your closing date. That’s not always easy. In addition, you cannot receive home insurance on a home that does not pass the four point inspection. So, how do you close on the home without the house insurance?

The common solution to the problem

Most home insurance companies will work with you. They want you to close on your home too, keep that in mind. So this is the offer they will make: we will give you home insurance on a 30 day conditional. This means you have 30 days from the day you sign off on your home insurance to have the issue(s) fixed and the home reinspected. As long as the house passes the re-inspection the policy will continue as agreed upon. Seems like a good deal? It can be.

Giving you home insurance based on your re-inspection

There are two potential results of this route. The first is you say yes, you have the issue(s) fixed, and the home passes the re-inspection. The best part is you don’t have to delay your closing. You can close on the home and do whatever needs to be done after. Keep in mind, once you close on the home all issues are now your responsibility. So if you need to have something fixed and it turns out to cost more than you expected, you will be footing the bill. The second potential result is you are not able to make the fixes necessary to keep your policy within the 30 days. You still get to keep your house, but likely the home insurance policy will change and they exclude the issues from your coverage. So in other words, if you need a new roof and you are not able to have it replaced within the 30 days, the insurance company will not cover your roof until it is replaced.

On the upside, it does mean that you are able to close on the home. So that’s a done deal. You also have home insurance for everything else. And you can always renew or change your policy once you’ve made those changes. The most important step is to make sure you have a very thorough home inspection to begin with. Be sure to call Divinity Inspections for your home inspection needs.

hud guidelines

Why You Should Get A Professional Home Inspection

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Deciding to buy a home for yourself and your family is a huge decision. It is one of the most important ones that you will make in your lifetime. When purchasing a house, you want to ensure your future home is in proper shape for your family. When a professional home inspection is done, a home inspector can end up saving you so much time and trouble in the long run.

Some Facts

Home inspection services have been life-changing for many homeowners all over the country. Did you know that it was reported that up to 70% of surveyed homeowners say that their professional home inspection helped them avoid potential issues? What about the fact that 64% of homeowners said that they saved a lot of money as a result of their home inspection in the long run? That is a lot of people that an inspector has helped.

Guidelines

There are many guidelines that inspectors have to follow when they are looking at a property. Many inspectors also do commercial properties as well. Any kind of building inspector knows what they are looking for when searching a building, whether it be commercial or residential, and can save the owner tons of money and time. Some inspectors are also trained in following HUD guidelines. Knowing the right information in terms of hud homes and the hud guidelines is crucial for inspectors to know.

You Won’t Regret It

It can be difficult to convince yourself to spend extra money on home inspectors and other services. When the cost of buying a home or property begins to rack up and get higher and higher, it’s easy to try and cut cost somewhere. But, not hiring a home inspector is not where you want to cut cost. They can save you tons of money in the long run and are worth every penny. They also check for things that will help keep your family safe for a very long time. Before purchasing your next property, stop and hire an inspector to be by your side every step of the way.

Schedule your home inspection today!

home inspection services

3 Things You Need To Do Before You Buy Your First House

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Many folks dream of buying a house for years until they’ve managed to save up enough to make a down payment on a home for the first time. You may have already started your house hunting adventure without having called an agent yet.

But there’s more to buying a house than choosing your favorite home listing. It’s crucial that you understand all the steps that go into buying a house and the steps that come before then.

If you’re starting your own first-time home buying journey, consider the following three things you need to do prior to putting any money down.

  1. Research the area. It’s all too easy to look through available homes in a city and choose a house based on aesthetics and price alone. But it’s important to research the area you want to live in first. The last thing you want to do is buy a home that’s in a not-so-great neighborhood or is too far away from your work. Researching the area in which you want to live is also beneficial because it helps you identify the average price of a house in that area. Be wary of homes that are priced too low or too high.
  2. Hire an agent. Many people believe they can do the house-hunting process on their one. But it’s one thing to look for a house and another to go through the paperwork and play phone-tag to actually buy the house. Agents are great because they not only help you find the home you want in the area you want, but they also prevent you from getting walked on by the sellers.
  3. Have a home inspection. One thing you never want to do to save money when you’re buying a house is to forego your home inspection. Up to 70% of homeowners have said that a housing inspection has helped them to avoid potential problems with their home.

Need home inspection services?

It’s no secret that a home inspection is a vital part of every potential homebuyer’s checklist. In fact, about 90% of surveyed U.S. homeowners believe that home inspection services are a necessity.

If you’re getting ready to buy your very first house, call a home inspector at Divinity Inspection Services first to give you the inspection you need to make the right call. For more information on housing inspections, HUD guidelines, and wind mitigation inspections, contact Divinity Inspection Services today.

203k consultancy

4 Ways 203k Consultancy Can Make Your House a Home

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People can be interested in fixer-upper homes for a variety of reasons. Maybe the price tag is what interested you, or maybe you looked inside and all you could see was potential. No matter the reason for your purchase, a fixer-upper needs that little bit of extra love, not just to make it your home, but often to make it livable. If you’re looking to secure a lower-interest 203k loan, then a home inspector should be considered an invaluable member of your team. If you’re still not sure why 203k consultancy is right for you, read on to discover some of the things that your consultant can do for you.

Inspection

As the title suggests, a 203k consultant’s primary job is to inspect the home before purchase. The inspection lasts between 2-4 hours and includes structural, electrical, plumbing, gutters, driveways, and an examination of doors and windows. Your consultant will then discuss the minimum repairs needed to bring the home to within HUD guidelines, as well as discussing the renovations you’d like to make from there.

Cost Analysis

In addition to performing the inspection itself, your consultant is responsible for making informed estimates of costs related to your repairs. In addition to materials and labor, the inspector can make valuable estimations about appropriate contingency funds in case your projects go over budget (which they often do)! One thing that’s important to discuss when negotiating the terms of your 203k consultancy is whether it’s possible to roll your consultant’s fees into the loan itself, allowing you to consolidate your payments and make sure that everything is taken care of.

Repair Inspection

A consultant’s relationship with homebuyers doesn’t end when the loan is approved, however. One of the most valuable services a home inspector provides is followup inspections on completion of the tasks. Because consultants are most often home inspectors, contractors, or architects who go through the process of becoming HUD-approved, they have the skills necessary to advocate for you after your repairs have been completed. Which leads to our final point…

Communication With Lender

One of the greatest tools 203k consultancy can provide homeowners is the peace of mind in knowing that the consultant is in contact with the lender. Once repairs are completed, as well as the necessary second-round inspections, your consultant will notify the lender that standards have been met, allowing repair funds to be released from escrow and your contractors to get paid. For major structural renovations, this process of communication and release of funds can happen several times before the final inspection and payment, ensuring that your consultant’s advocacy helps you throughout the entire process.

203k loans are a vital part of the home-buying process because they allow homeowners to take properties that lenders might not otherwise take a chance on and beautify the community while making a house a home. With the help of 203k consultancy and a vision, you’re one step closer to realizing your dream home. Do you have questions about how to choose the best consultant for your needs, or things you wish you’d known before you started looking for your dream home? Let us know in the comments below.

fha guidelines

How to Get Ready for a Home Inspection

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FHA Guidelines and Home Inspections

 

When it comes to home inspections, the FHA Guidelines are pretty comprehensive. On average, a home inspection requires 500 data points. That is a lot to comb over. Having an FHA home inspector come in can seem a bit daunting if you don’t know how to properly prepare. However, once you understand the FHA guidelines and know how to prepare for a building inspector, there really isn’t much to worry about.

 

As experts in FHA Guidelines, we have prepared a small list for you of things you can do to prepare for an FHA home inspection. Passing the FHA guidelines is vital to selling your property, whether commercial or residential. Here is what you need to know:

 

Easy Access to Critical Areas: Be sure that access to critical areas of the home are clear. This includes the electrical box, furnace, water heater, and air conditioning units among other things. All of these aspects must be included in the inspector’s report, and if there isn’t an easy way to access them, the inspector will be unable to include them in the report. This is a big red flag to potential buyers.

 

Prepare the Plumbing: Plumbing is one of the biggest issues for home inspections. Before having the home inspected, go through each sink and bath drain to make sure they drain properly. If you notice a slow drain in any of the sinks or baths, be sure to fix the drain or clog before having the home inspected. This could be done with store bought clog removers or with the help of a plumber.

 

Replace All Light Bulbs: Go through the home and find any burned out light bulbs. Replace these before having a home inspection done. If the lights are burned out, an inspector cannot tell if it is because of the light bulb or an underlying electrical issue. Having all the bulbs in working condition ensures you get top marks on electrical for your home.

 

Replace Air Filters: Just like light bulbs, replace your air filters. This usually is very inexpensive and only takes a few minutes. Having clean air filters on the HVAC system is impressive to home inspectors as it shows proper upkeep of the home.

 

Smoke and CO2 Detectors: Make sure all of your smoke alarms and carbon monoxide alarms are in working condition and are not expired. The carbon monoxide detector should generally be placed in the sleeping area of the home.

 

Pest Control: This should go without saying, but get rid of any pest or bug problems before having a home inspection done. Termites are an automatic failure. Other pests of note are carpenter bees, carpenter ants, and other wood destroying insects. Take proper measures to ensure your home is free from pests before inviting the inspector over.

 

Get Properly Capped: There are many parts of the home that should be capped. If you have a chimney, be sure it is properly capped to avoid hot embers from floating up and landing on the roof. Unused gas lines should also be caped.

 

Proper Yard Maintenance: Make sure your landscaping looks good. This is the first impression as the inspector comes over and you want to set the tone. Additionally, consider how any of the trees or overhanging plants might impact your property. For example, large trees with branches that hang over a roof can damage the roof not just by falling, but by allowing moss and lichen to build up on the roof, compromising its integrity. Trees also allow rodents access to the roof and chimney of the home.

 

Check Windows and Doors: Check all of the windows and doors in the home to ensure they are functioning properly. Be sure that each lock is secure and works, as this is a big factor in overall home safety. Additionally, be sure that the hinges are working properly and aren’t lose, creaking, or otherwise unappealing.

 

Be Up Front About Issues: If there are issues that you know could scare away potential home buyers, be up front about them. Trying to hide issues is only going to end up devaluing your home. Go through the latest home report you have for any unaddressed issues you have faced in the last years.