Brandi Haddock -Realtor

What is the difference between Home Inspections and Bank Appraisals for Mortgage Loans ------ Do you really need both?

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​​​​​​​​Independent Home Inspections​​​​​​​​​- ​Independent Home Inspectors are inspections by someone who "believes" they are qualified to inspect your potential home for defects or issues.  Many inspectors are more than qualified having been previous contractors with experience in the quality of a home.  Obtaining a independent home inspection is OPTIONAL and is requested by the buyer of a property under contract.  A home inspector is NOT LICENSED OR ACCREDITED in the State of Missouri. 

There are no CERTIFIED FHA/RD/ VA HOME INSPECTORS in the ​

State of Missouri .  Home inspections are usually more thorough

compared to appraisals, in the sense that they are creating a

report of the issues and defects discovered in the home.  

Whereas the appraisal is only used for marketing and home

value purposes, which will only note major defects affecting

property values.  The best way to select a home inspector is

through referrals from friends, family, lender, or your Realtor.​

The cost for an Independent Home Inspection can range from $250-500 and up- and is a Buyers cost.

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Bank Required Appraisals​-are REQUIRED by your lender to determine if the price the home is under contract for is a fair and marketable value.  Appraisers are fully LICENSED in the State of Missouri and are required to receive additional training throughout their career to maintain their license. Appraisers can be CERTIFIED IN FHA/ RD/ AND VA LENDING REQUIREMENTS.  In addition, the appraiser is basing their expert opinion and appraisal report on very specific loan program requirements that are predetermined and set guidelines that have to be adhered to. The appraisal report is subject to underwriting approval before the lender will approve the loan. Buyers are NOT allowed to select an appraiser-they are selected by a third party vendor that lenders use for the reason of

​"at arms length transaction" for a fair and unbiased opinion.  The expense for a Bank Required Appraisal is customarily a Buyer's cost and usually runs $500-750.