Home inspection in purchase contract?

[lavender960]

Hi forum,

Currently in the market for a home. Heard from loan agent(based in SF) that if the purchase contract Q section calls out home inspection report then the bank will ask to see the inspection report and will very likely nitpick and not approve the loan, so we should do avoid that in purchase contract and only add in an inspection in a secret addendum which a lot of people do. My local real estate agent said they have never heard of this and has never seen home inspection in contract being an issue in their decade of sales.

Is this a regional thing? Which one of them is right? I have never bought a house in California.

 

[sgip]

Hi forum,

Currently in the market for a home. Heard from loan agent(based in SF) that if the purchase contract Q section calls out home inspection report then the bank will ask to see the inspection report and will very likely nitpick and not approve the loan, so we should do avoid that in purchase contract and only add in an inspection in a secret addendum which a lot of people do. My local real estate agent said they have never heard of this and has never seen home inspection in contract being an issue in their decade of sales.

Is this a regional thing? Which one of them is right? I have never bought a house in California.

Your Realtor is correct. Your lender is giving poor advice.

The issue may only come into play in three circumstances

A) If the termite inspection has Section 1 items to repair and the Seller won't do them.

2) If the appraisal report calls out water stains, wood rot, or other issues with the home that indicate problems.

III) Your insurance company may do their own inspection prior to issuing a policy. They may refuse to insure if there are visible issues.

Always get your own inspection done. It will not present an issue.