The Home Buying Mistake You Should Never Make
What Is the Fatal Mistake Home Buyers Make?
When you make an offer on a home and are serious about purchasing that particular piece of property, an appraisal is required. Lenders, real estate agents, borrowers, and others involved in the home loan process sometimes use the term “inspection” when they really mean “appraisal”.
The lender orders the appraisal, and may (or may not) tell you that an inspection has been ordered. But this lender-initiated process is NOT a home inspection nor should the results of the appraisal (again, often referred to as an inspection) be interpreted by the borrower as an inspection.
Why You Should Not Trust the Appraisal Process to Tell You the Home’s True Condition
The appraisal process is NOT DESIGNED to tell you, the borrower, about the home’s condition in any full or meaningful way EXCEPT to certify that the real estate meets MINIMUM FHA STANDARDS. Emphasis on “minimum”.
The appraiser is not an expert in all systems of the home, the appraiser does not have to step onto the roof, and the appraiser is not going to do the kind of in-detail inspection you need to tell you the true condition of the home. That is NOT the appraiser’s job.
What the Home Buyer Must Do to Get a Fully Informed Idea of the Condition of the Home
The borrower should always hire a home inspector to look at the property and make the final decision about buying the property contingent on the results of that home inspection. Remember, the appraisal process is a lender-initiated one; it is solely the responsibility of the borrower to hire an inspector and get the results.
If You Did Not Personally Hire a Home Inspector, You Have Not Had a Home Inspection
That is an area that trips up some first time home buyers. They assume that because the appraisal process is referred to as an inspection that an inspection has actually taken place. But unless YOU the BORROWER make arrangements to have your potential new home inspected, you have NOT received an inspection.
Yes, it is possible that the owner of the home may arrange an inspection, but unless you have full access to the results of that inspection (and not just the seller’s word for it) you still have not been given the tools you need to make a fully informed decision about buying the home.
What Is an FHA Loan?
Using an FHA Loan Calculator
Meeting FHA Loan Guidelines Improves Your Chances
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