13
Jan
What Comes First A Home Inspection Or A Home Appraisal When Buying A Home??
Author: Rob // Category: Q&AI am buying a house and my mortgage broker told me that he ordered an appraisal on the property before i got my inspection(that turned out to show water damage).Is this right?It just seems to me the you would want to find out if the property is ok before ordering an appraisal.Oh and yes i got a copy of the appraisal if you are wondering.
Tags: Appraisal, Buying, Comes, First, Home, Inspection, What, When
January 13th, 2010 at 1:21 pm
I always recommend doing the home inspection first. It doesn’t matter about the appraisal if the home inspection comes back revealing lots of problems and you don’t want to move forward.
January 13th, 2010 at 6:43 pm
Appraisals are for the lender to know if the house is worth the money they are lending. Inspections are for YOU to know what is wrong with the house. The appraiser is NOT a certified inspector, so if he sees water damage, then it must be pretty severe, which basically means you probably need to find a different house. All lenders want the house to have an appraisal. If they notice something wrong (like the water) they could require further inspections before lending their money.
Just an FYI in the future, there are inspecting companies that will charge you for the inspection at closing, When they do this, they send a copy to the mortgage comany, and if the lending/mortgage company gets wind of ANY problems with the house they will require you fix ALL of them before lending their money. So, if you get a house inspected you should pay for the inspections up front, so that the mortgage company does not see all the little defects and not lend the money. Obviously you would want the major things fixed, but sometimes you just have to accept the little things (loose knob, scratch in the door etc.).
January 13th, 2010 at 7:17 pm
the appraisal shows the lender if the asking price is a realistic amount based on the value of the property. If you were told it wasn’t worth the amount the sellers were asking, then finding out the condition might no longer be of interest if you wanted a better quality house.
Since the buyer usually pays for the appraisal, I think I might want an inspection first to know if it was even worth my time finding out how much the house was worth. If it was falling apart why should the potential buyer then pay for the appraisal? I would just keep looking.