Home Appraisal? Home Inspection? Aren’t They the Same!?

The period after your home offer gets accepted can be quite hectic. Home appraisal? Home inspection? Do you need both? Learn about the differences today!

You’ll Soon Be a Home Owner

Congratulations! You’ll soon be joining the world of homeownership. Your offer on the house was accepted, and you’re  closer to getting your dream home! The journey to getting your new home is almost coming to an end, but there’s still so much to do after your offer is accepted. First, you need to talk to your mortgage lender. They will have some requiriments such as  getting title insurance and a home appraisal. Also, your real estate agent might suggest you  get a home inspection as well. Wait a minute! Aren’t they the same thing? No, they’re different things, and in this post, you will learn all about their differences.

The Home Appraisal

Your mortgage lender needs to know that the amount of money they’re investing in your new home is worth the it. They don’t want to spend more money than necessary, which is why they will ask that you get a home appraisal. The appraisal will let the lender know the actual market value of the house. It’s possible that your loan ends up being less than what you initially considered, so be prepared. These are some of the things the home appraiser will consider.

• Local market: Home appraisers need to study the local market prices and compare the house to them. This study will help them decide what the house is worth. Market prices are constantly changing, so house prices often vary.
• Neighborhood: The appraiser will examine the area where the house is located. The way the neighboring homes look and what amenities such as schools, shopping areas, or parks are close by.
• Similar houses: Appraisers compare the prices of other similar homes recently sold around the area. They compare houses which share similar characteristics like the size and number of rooms.
• Age: The appraiser evaluates how well the house is aging compared to others. If the seller has recently made improvements, the value will rise. However, appraisers only compare homes around the same age.
• Structural issues: The home appraisal will also consider the home’s structure and construction materials. The appraiser will verify the materials are good quality and long-lasting. You don’t want a house that’s sinking to the ground or falling away in pieces.

Follow your mortgage lender’s requests and get title insurance too. All you need to do is call Advanced Title Company at (970) 255-7677 to start your title insurance process in Clifton.

The Home Inspection

The home inspection is something you want for your benefit. You don’t make a huge purchase, such as a house without analyzing every possible detail. One or two viewings aren’t enough for the untrained eye to catch potential problems, which is why you need a home inspector. A home inspector is a professional who will examine the house and tell you what things need to be fixed or replaced. The inspection might help you negotiate a better deal, or ultimately, help you decide to back out of the process. Here are some of the things the inspector will examine.

• Electrical: The inspector will check that there are enough electrical outlets available in each room and that they’re fully functioning. They will also test all the light switches. Lastly, they will look for any visible or cracking wires, which are potential hazards.
• Structure: The foundation of the house must be steady, reliable and safe, that’s what the inspector will look for. They will also verify that every door and window is symmetrical and straight.
• Plumbing: Repairing the plumbing system can end up being costly, so if there’s anything wrong it should be fixed before the sale is complete. The inspector will test all the toilets and skins in the house, check the water pressure, water heater, and drains.
• Roofing: The inspector will either climb on the roof or use binoculars to check for leaks, loose tiles or shingles, and the state of the gutters.

Purchase Your Title Insurance in Clifton

Almost as soon as you ask for your home appraisal and inspection, you need to ask for your title insurance as well. The process looks back at the Title’s history and checks for any lien or other problems that might later affect you. It can be a long process, better start soon. You can call Advance Title Company at (970) 255-7677 to request your title insurance in Clifton.