Why does a lender inspection come before loan approval?
Banks aren't offering six figures just because of a handshake. They need details of what they're getting before they'll issue a mortgage. This is the purpose of a lender inspection, and why your loan officer keeps asking questions about the property, not your income. Your credit score suggests you’ll repay. The house proves the loan is still safe if you don’t. Lenders need both halves of that equation, and the inspection covers the second one. The Collateral Logic Behind a Lender Inspection Because it's a loan backed by the value of a house, which means it is a loan secured by a home. When someone fails to make payments, the bank just repossesses the house and auctions it off for its money. A house with a sinking foundation or dying roof is worth so much less, so the bank gets that loss. That risk is the whole reason inspections exist. Buyers who want clarity before the bank asks for it can work with Art Neidich, who provides thorough building inspection and lender i...