FHA Appraisals Versus Home Inspections For Homebuyers
In this blog, we will discuss and cover FHA appraisals versus home inspectors for homebuyers. There are differences between FHA Appraisals Versus Home Inspections. Home appraisals are mandatory and required by all lenders. However, home inspections are not mandatory. It is up to the home buyer whether or not they want to spend the money on a home inspection. Home inspections cost anywhere between $300 to $500. The cost depends on the area, type of property, and how thorough the home buyer wants the home inspected. Home inspections are strongly recommended.
Misconceptions on FHA Appraisals versus Home Inspections
Many folks are under the assumption that an FHA Home Appraisal is more thorough than other types of home appraisals. Therefore, a home inspection will not be necessary. This is not true. A home appraisal will only check the home to see if the subject items are in compliance and in working condition.
Appraisers Will Not Inspect Condition of Interior and Exterior of Home
They will not thoroughly inspect whether the inspected item is in good condition and/or longevity. For example, the appraiser will check for water in the basement but not if there is a cracked foundation. The appraiser will not check for an old furnace that is on its last leg. They will just check whether the furnace is working. In this blog, we will discuss FHA Appraisals Versus Home Inspections. We write about FHA home loans, the FHA appraisal process, and why the appraisal should never be used in place of a home inspection to determine the condition of the home.
Risks With Not Having A Home Inspection
A home inspection is an insurance policy that the home is in good condition. If there is an issue with the subject property, the home buyer can either cancel the purchase transaction and/or request the repairs to be completed. Or they can get a cash credit by the home sellers and decide to do the work themselves.
FHA Appraisals versus Home Inspections: Risks of Not Having a Home Inspection Done
Homebuyers who do not arrange for a home inspection and just rely on the FHA Appraisal are putting themselves at risk when buying a home. An FHA Appraisal will not uncover hidden issues. There are major differences between FHA Appraisals Versus Home Inspections. Appraisers do inspect the home. However, they inspect the home for safety and health-related issues and do not inspect the home for wear and tear and hidden problems.
FHA Appraisals Versus Home Inspections Guidelines
On the above quote from HUD 4000.1 FHA Handbook, the appraiser is not required to do a thorough inspection of the attic to search for issues. On the other hand, home inspectors do an in-depth inspection of the attic area.
It Is Highly Recommended Home Inspection For Homebuyers
Home buyers need to realize the difference between FHA Appraisals Versus Home Inspections. It is highly recommended buyers invest the money for a home inspection when buying a home. That few hundred dollars can save homeowners tens of thousands of dollars in the future. For more information on this topic and/or other mortgage-related topics, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at firstname.lastname@example.org. The Team at Gustan Cho Associates Mortgage Group is available 7 days a week, evenings, weekends, holidays.
March 26, 2022 - 3 min read