When you purchase a home with FHA financing, you are lucky enough to be required to have an FHA appraisal performed. This appraisal is a way of not only getting the fair market value of the home for the lender, but is also a way to ensure that the home is safe and sound. Does this mean that you do not need an FHA home inspection, though? Most people would agree that you should still get an inspection done, whether or not the home passes the safe and soundness test required on an FHA appraisal. Here are three reasons why.
The Appraisal does not Check Everything
Remember that the number one reason for an FHA appraisal is to get the value of the home. This allows the lender to determine how much of a loan they can provide you. It also allows them to determine if the sales price that you agreed to for the home is worth it. If the sales price is higher, you are going to have to pay the difference between the sales price and the value in your down payment or run the risk of losing your financing. That being said, the appraiser is required to make sure the home is livable without any serious concerns like mold or termites, but they are just large issues that the appraiser is required to look for. There are many other issues that could pop up once you move in if you do not have an inspection. An FHA home inspection is a much more in-depth look at the home and how it operates. It gives you a way out of the home if there are major issues with it that threaten to cost you large amounts of money down the road.
You need Peace of Mind
Buying a new home is expensive, no matter what type of financing you get. Whether you have to put down 3.5 percent or 10 percent, there are still many other costs involved in the home purchase process. Think of things like moving costs, FurnitureOkay furniture, appliances, and getting utilities up and running, just to start. These things cost money and if you have to pay for them on top of other serious issues that pop up once you move into the home, you can find it difficult to get your bills paid. You probably do not want to start your new mortgage history off with a late payment or two, do you? When you have a home inspection done, you will have better peace of mind that everything is working well and you will not be required to put up a lot more money upon moving into the home.
A Non-Biased Opinion
If for no other reason, hire an FHA home inspector for a non-biased opinion on your home. The lender and the FHA do not offer referrals for home inspectors so any professional that you use will be completely unaffiliated with the process you are going through. This gives you even more peace of mind that you will know exactly what is wrong with the house and how much it might cost you to fix it. Minor issues that pop up might not seem of concern, but if you have several minor issues or one or two large issues, the dollar signs can really start adding up. Having someone that is not invested in the home buying process at all will help you really have a good view of the home and how it will do for you.
The FHA home inspection might seem like another unnecessary step in the complicated home buying process, but if you want to make sure that you are purchasing a home that you can live in safely for the next few years, at the least, a home inspection is well worth the time and money before you get an FHA loan.
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