Do I need a home inspection when my bank is having the home appraised?
Yes! A home appraisal is an independent evaluation of the current market value of a house or property. In general, the purpose of an appraisal is to set the current value of a house so that a lender may determine how much it can loan to the buyer. The appraiser looks at similar properties in the area and the prices at which they were sold to set the value of the house.
A home inspector conducts a thorough evaluation of the houses major systems and structural integrity. Whereas the appraiser is typically working for the bank, the home inspector is working for you.
U.S. Department Of Housing And Urban Development (HUD) requires buyers sign a Consumer Notice advising them to get a home inspection in addition to a home appraisal before purchasing a house with a FHA mortgage.Additionally, HUD now allows home buyers to include the costs of appraisal and inspection in their FHA mortgage.
Note: Some mortgages, such as VA and FHA require the appraiser to complete a “Home Inspection”, but this would be like comparing apples and oranges from what a professional home inspection can provide you. Ask any appraiser and 100% of them should tell you that they do not do home inspections.