Arcstone Financial - A National Home Loan & Refinance Lender

The Home Inspection

Once you've had an offer accepted, it's time to schedule your home inspection. While this step is usually not required for getting a mortgage, it's a way to protect yourself from buying a home that will cost you more money than it's worth. It's your job to find an inspector and pay for the inspection. However, your real estate agent may be able to help with this. They can recommend an inspector and possibly even set up the inspection for you.

A typical home inspection will cover surface-level elements of the home, such as structural components, outlets, heating and cooling systems, appliances, and more. However, the inspector can't check out aspects of the house that aren't easily accessible or visible. For instance, you'll need a specialized inspector to identify lead, mold, asbestos, radon, and pest problems.

Be sure to attend your inspection and ask all the questions you can think of. This is your chance to walk through your new home with an expert. They can tell you about the red flags and recommend what to fix first and how to go about it.

How much does a home inspection cost?

Home inspections typically cost between $200 and $500, although this can vary widely based on the inspector you choose, the size of the home, and other factors. It's important to remember that you get what you pay for; inspectors have varying levels of knowledge and experience, and they're not required to be licensed in every state. If you opt for an inspection or test that's not part of a standard home inspection, such as a radon test, you'll pay an additional charge.

Appraisals are a required part of the home buying process. The appraisal protects you and your lender from paying more for a home than it's worth. Your mortgage company will order the appraisal for you, although it's important to note that the appraiser is always an independent third party. By law, appraisers can't be affiliated with you or your mortgage company. This ensures the appraisal process is fair.

If the appraised value of the house comes back higher than your purchase price, good news! You just snagged a deal and some additional equity in your home. On the other hand, a lower-than-expected appraisal value can cause problems for your mortgage process since your lender will never lend more than the appraised value of the property. If your appraisal comes back low, you have a few options:

Bring more money to the table to make up for the difference in price
Negotiate with the seller to lower the home price
Contest the appraisal if you think there's an error in the report
Walk away from the deal

How much does a home appraisal cost?

You can expect the appraisal to cost between $250 and $600, although this cost can vary based on the type and location of the property. You'll pay more if you're buying a multi-unit property, for example, or if you live in a remote area that the appraiser has to travel to.

While all of this is happening, Arcstone will work on underwriting your loan. This is the process of verifying your income, assets, debt, and property details to issue final approval for the home loan. Our process ensures the underwriting of your home loan is as quick as possible helping you get into your dream home.

Much of this happens behind the scenes, but we may ask you for additional documents during this time. For instance, we could ask for documentation that shows where deposits in your bank account came from or provide proof of additional assets. It's important to stay on top of your lender's requests to make sure you don't slow down the loan process.

What You Can Do to Ensure Your Loan Closes

The biggest thing you can do to make sure you don't run into problems is to avoid any major financial changes or spending. Don't apply for new credit lines or loans, and don't make purchases that will deplete your assets. You can do these things after your loan closes.

Taking on new debt changes your debt-to-income ratio (DTI), a key factor in determining the loan amount you can get approved for. If your DTI increases, you may be able to qualify for less – which could be a problem depending on your home price. If you push your DTI past about 45%, it's possible you won't qualify for a mortgage at all.

Preparing to Close on Your House