Hi I just had my offer accepted for my first duplex! I plan to house hack. I'm getting a home inspection, radon testing, and a sewer line inspection. Do investors typically get all of these inspections or is this overkill?
Also what kind of interest rate should I expect if I'm putting 5% down and getting a conventional loan with credit score of 750+?
I'm getting the sewer line inspection because I now someone else who recently purchased a place and didn't get it but now they need a new line and it's costing them $10,000.
Congrats @Josh Cook !
I had the same 5% conventional at 3.5% interest. However that was a year and a half ago. Maybe around 4%-4.5% now?
@Kyle Soderman thanks! Okay sounds about right. I was quoted over the summer at 4.5% and I thought it was high considering my credit score is close to 800 but they said the interest rate was higher because the loan is for only 5% down and it's a duplex.
@Tim Swierczek can help you with the current rates, he is wrapping up a conventional loan for me right now.
As far as inspections go - I don't pay to have properties inspected. I do enough digging when I am there and have seen a lot so I am somewhat comfortable taking on the risk. Most of the properties I purchase are rehabs so I am expecting some level of work from the get go. I wouldn't recommend it to someone new however I have seen enough people come, tinker around checking light switches, making sure outlets are grounded, etc and not finding an issue that I pass on the cost. The biggest reason I pass is because it makes my offer look better. And after looking at plumbing and electrical systems it is easy to identify when you may have potential problems (old wiring, handymen repairs, plumbing repairs, etc).
Most home inspections include a radon test right now. Best case scenario, radon isn't an issue, worse case, you have to have a vent installed which doesn't cost a ton. Sewer can be a large cost if there are issues however it may cost $400 to get someone out with an inspection camera. I personally have an inspection camera but I don't use it unless needed. I may think otherwise if I was buying a 100 year old property that has been vacant a long time though.
Thank You @John Woodrich
@Josh Cook There are multiple factors that affect your price, but with a 750 Fico & 5% down conventional duplex with a purchase price of 290,900 and a loan amount of 276,355 A rate of 4.5% would result in a Zero lender fee situation with a substantial lender credit toward non-lender closing costs such as appraisal, title, government recording, taxes, etc
I cannot legally post rates on this board without invoking federal advertising laws but I will send you a collegue request with 4 rate options ranging from 4.25%-3.875%.
@Josh Cook my bad, I hit send to early and now I cannot send you a message until you accept my request.
@Tim Swierczek thanks for the info! I accepted your request.
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