Home Inspection Benefits When Using a California VA loan

In a previous article, we explained how home inspections are optional when using a VA loan to buy a house in California. The U.S. Department of Veterans Affairs does not require you to have a home inspected prior to purchasing it, though they do require an appraisal.

But these inspections do offer some major benefits for home buyers. If you’re planning to buy a house in California, and you’ll be using a VA loan to finance your purchase, you should at least consider having the home inspected prior to sealing the deal.

Home Inspection Benefits When Using a VA Loan

Even though it’s not required, a home inspection can help you identify potentially serious problems with the property before you purchase it. This knowledge could help you negotiate a better price, plan for future expenses, and make a more informed decision about whether to proceed with the purchase.

Here are the main benefits of a home inspection when using a VA loan in California.

1. Uncovering Hidden Issues

Unless you are a licensed contractor or construction professional, you might overlook some hard-to-spot problems when visiting a home for sale. Some issues can be obvious and apparent, while others require more of a trained eye.

For example, a home buyer using a VA loan would probably be able to identify a major crack within the foundation. But they might not notice a “double-tapped” circuit breaker that prevents a fire hazard. These are the types of things inspectors look for.

This is arguably the biggest benefit of using a home inspection with a VA loan in California. It helps you identify issues that might lead to repair costs or safety hazards down the road.

The state of California does not have any specific licensing or education requirements for home inspectors. Because of this, the inspection process and checkpoints can vary from one inspector to the next. But they usually check the following items, at a minimum.

• Roof: condition of shingles, flashing, gutters, and downspouts
• Foundation: cracks, bowing, or settling
• Drainage: proper grading away from the house
• Decks and porches: structural soundness, railings, and stairs
• Windows and doors: operation, seals, and weatherstripping
• Chimneys and vents: condition and proper clearance from combustibles
• Plumbing: leaks, corrosion, and proper water pressure
• Electrical: wiring, outlets, and switches
• Heating and cooling systems: operation and efficiency
• Attic and crawlspace: insulation, ventilation, and signs of pests
• Fireplace and flues: condition and proper clearance from combustibles
• Smoke detectors and carbon monoxide detectors: presence and proper operation

2. Peace of Mind for the Buyer

A home inspection can also give you peace of mind when buying a house with a VA loan. When you have a property thoroughly inspected, you will discover the true condition of the home prior to purchasing. This allows you to make a well-informed purchasing decision.

Consider the difference in these two scenarios:

With a home inspection, the buyer will understand the current condition of the property including any items in need of repair. The buyer can then decide whether they want to proceed with the purchase or exit the deal (perhaps by using an inspection contingency to protect their deposit money).

Without an inspection, a California home buyer won’t know very much about the home’s true condition. They might discover that it has serious problems after they’ve closed the deal and moved into the home. In that case, they would be on the hook for any repairs.

This is another key benefit to having a home inspection when buying a home with a VA loan. It gives you the information and knowledge you need to make a smarter buying decision.

3. Negotiation Power

A home inspection could also help you negotiate with the seller, and in several ways.

In a typical real estate transaction in California, the home inspection takes place after the buyer and seller have signed a purchase agreement. But that doesn’t mean the negotiations are done. If the buyer has a home inspection contingency in place, they still have some room to negotiate regarding any necessary repairs identified by the inspection.

For example, let’s assume that a home inspector discovers significant damage to the roof, with multiple leaks. The estimate cost for repairs is $5,000.

The buyer might then present the following request to the seller:

“Based on the home inspection report, there are some concerns that we’d like to discuss. Firstly, the roof has significant damage, and it’s going to cost approximately $5,000 to repair. We would like to propose that you either take care of the repairs before the closing or provide a credit for this amount toward the sale price.”

Granted, your ability to negotiate will partly depend on current market conditions.

• If you’re in a highly competitive market with multiple competing buyers, you might not want to make this kind of request.
• In a slower market, on the other hand, buyers typically have more leverage when requesting repairs based on home inspection findings.

The point here is that the home inspection could give you additional negotiating leverage, especially if it uncovers significant issues.

Meet Your California VA Loan Specialist

At Bridgepoint Funding, we specialize in VA home loans and serve borrowers all across the state of California. We have been working with this program for nearly 20 years and know the process inside and out. We can answer any questions you have about using a VA loan to buy a home.

We can also help you prepare for the house hunting process by pre-approving you for a loan. This will help you narrow your housing search to a specific price range, making the process more efficient. We can even help you obtain your Certificate of Eligibility (COE), a necessary step when applying for a VA loan.

Please contact our staff with any questions you have or to start the application process!