Inspections: Why They’re a Good Idea and How They Differ From Appraisals

Feb 28, 2018

Your Realtor might encourage you to do a home inspection, and we do, too! What is a home inspection, though? Doesn’t the lender already require an appraisal?

Yes, the lender does require an appraisal, but an appraisal is not the same thing as a home inspection. An appraisal is ordered to protect the lender by confirming the home's value and ensuring the property is marketable. An appraisal will sometimes require repairs to be completed, but these are only for basic safety issues. No loan program  – not VA, Rural Development, FHA or Conventional financing requires a full home inspection.

Unlike an appraisal, a home inspection gives the buyer more detailed information about the overall condition of the home prior to purchase. In a home inspection, a qualified individual takes an in-depth, unbiased look at your potential new home to:

  • Evaluate the physical condition: structure, construction, and mechanical systems
  • Identify items that need to be repaired or replaced
  • Estimate the remaining useful life of the major systems, equipment, structure and finishes

You or your realtor must arrange for a home inspection prior to closing. The best course of action is to have your realtor write a contingency into your offer that the property must pass a home inspection before closing. That way, any items you, as a layperson, might not have noticed should be repaired can be negotiated prior to closing.  

Please remember: neither an appraisal nor the lender guarantees the condition of your new home. 

Your trusted mortgage loan officers at Residential Mortgage Network are always looking out for your best interest as a home buyer. Contact us today for excellent home loan programs and customer service.