VA Home Loan Inspection Report

home loan inspection reportBuying a home is a major decision. It requires a lot of thought and diligence. When purchasing a home, a VA loan can be a great option. The VA will take steps to ensure the property is a good investment for you. One of the reports required by the VA in all situations is a home loan inspection report. It is often required by other mortgage lenders, also. There are several frequently asked questions many people have about home inspectors and the inspection process.

Who Completes a Home Loan Inspection Report?

A home loan inspection report is a very standard. It is completed by someone who is licensed and certified to complete such inspections. When it comes to providing these reports to the VA mortgage department, the licensed individual will need to be preapproved. This means they will be vetted by the VA. During the property inspection process, if the inspector notices something irregular that could require more analysis or review, they may hire an additional contractor to complete the review.

What Do Home Inspectors Look For?

When a home inspector starts a new inspection, they will largely be tasked with reviewing the overall condition of the home. This includes walking the interior and exterior of the home to notice any visible signs of decay or other issues. They are responsible for ensuring that the plumbing and electrical systems are working as well as possible. And, also, that all home appliances and other features are working well. The inspector will spend time looking at the roof, windows, and major mechanicals to determine what the average remaining useful life will be.

A home inspector could also spend time walking the property to ensure that it is up to code. They will make notes if there are obvious issues. For instance, a room addition that is not properly zoned. Or if there needs to be improvements to make the home safe.

What is in the Report?

After the inspection has been completed, the home inspector will issue a home loan inspection report for review by the borrower and the VA home loan provider. The report will include a summary of the overall condition of the home. Issues that were found in the home and a recommendations section. The recommendations section will outline all the areas that should be addressed, either before you buy the home or shortly after you buy the property. The report will also give a detailed breakdown of the expected costs to make any necessary repairs to the home.

How Can I Use the Report?

Once you have received the report and the recommendations, it can be used in several different ways. If the reports have a significant number of major repairs needed, it could put the entire approval process into question. In these situations, the seller will likely need to make the repairs before you are able to move forward. In situations with less significant repair costs, you will be able to use the report to potentially negotiate receiving a credit from the seller at close. If you do not receive a credit, it will at least act as a guide to use when budgeting the repair costs.

VA Loan Rates: Why Do They Change?

va loan ratesDeciding to buy a home is a huge decision and is confusing with all the terminology that gets thrown around. One option for veterans is to use a lender that offers VA loans. Once you decide that a VA loan is right for you, the next thing to examine is VA loan rates from one lender to another.

A lower interest rate on a loan means that you’ll have a lower monthly payment and end up paying much less over the life of the loan.

VA Loan Rates

What are the Benefits of a VA loan?

A VA loan does not require a down payment, unlike other loan programs. Most require at least 20% down to avoid paying private mortgage insurance, while a VA loan you can finance the entire cost of the mortgage.

Since VA loans are guaranteed by the government, individuals who get a VA loan and don’t put down at least 20% are exempt from paying for PMI. This also means you’ll have a lower monthly payment than you would with other loan types.

Lenders offer VA loans because they are government guaranteed and create less of a risk than other mortgage programs to the lenders.

Why and how Often do rates change?

VA loan rates are highly regulated, but they’re not fixed and vary depending on how the market performs that day. In the past, the VA set their own lending rates, but that’s not the case any longer. Lenders are allowed to charge their own rates to keep the market competitive with other VA lenders and other loan programs.

The Government National Mortgage Association (GNMA), commonly referred to as Ginnie Mae, provides liquidity in the market. They do this by purchasing VA loans from the lenders that issue them.

Lenders sell the loans to get money to provide more loans to consumers. The GNMA 30 year bond gets traded on the market daily like other securities and bonds that are bought and sold based on investor strategies.

Every day lenders look at the Ginnie Mae bond price and change their interest rates to match. The index each lender uses is the same, meaning that rates vary little from one lender to another. Rates from one lender to another aren’t static but don’t expect to see drastic differences when looking at the different loan rates from one bank or credit union to another.

Rates can change daily and frequently vary from the morning until the afternoon, especially if something affects the market. Investors put money into the market if they feel confident about how the economy is doing.

They’re more likely to invest money in stocks and transfer money from bonds. This causes interest rates to increase, while rates tend to decrease if investors feel that economy is headed downward. Understanding

Assists in broadening your knowledge of the mortgage process and different types of loans available. This information will assist you with pursuing the loan type that fits your financial situation and home-buying goals.