Home inspection and home appraisals are both very important aspects of the home buying process, but it’s important to realize that these two things are very different from one another—and that, in 99% of cases, only an appraisal is required for the lending process to be completed.

This isn’t to say that inspections don’t have their place in the transaction, but rather that they are not something lenders will tend to focus on.

In short, appraisals are an assessment of a home’s value, while inspections are an assessment of a home’s condition.

Appraisers assign value by visiting the home in question and comparing its relevant features against those of other similar properties that were recently sold in the area.

“The home inspection is for you, the home appraisal is for the lender.”

Appraisers may point out safety issues or health hazards, like the presence of mold, but will not test the home’s major systems and appliances for functionality like an inspector will. The home inspection is for you; the home appraisal is for the lender.

The only lending program that requires any sort of inspection is the VA loan, which, in the state of Florida, requires clear termite inspection results before funding is provided.

Also, if the property you plan to purchase sits on top of a well, it is always a good idea to order a well inspection before pursuing a government-backed loan, as a water-quality test will be required.

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.