April 16, 2021
It’s important to learn as much as you can about the home loan process when planning and saving for your new mortgage. If you are a newcomer to the home loan process, there are some good resources that can help you be more informed borrower.
The less informed you are, the more likely you are to have some kind of regret at the end of the home loan process. The more you know, the more confident you will feel about your choices along the way.
One important issue for many borrowers is the FHA appraisal process. Are you in-the-know about what happens during the appraisal, what it is intended to do and why you should never trust the appraisal to provide you the information that only a complete home inspection can?
Appraisals are a tool for the lender. Borrowers should NEVER rely on the appraisal alone without arranging for the optional but extremely important home inspection. Do you know why?
Borrowers should know that buying a home without getting a home inspection means the same thing as buying a used car without test-driving it or looking under the hood.
There are many issues that may be hidden in the home that an FHA appraisal will never catch. Only a home inspection is able to find these issues–they are designed to take a much closer look at the property than an appraisal.
And finally, remember that there’s no recourse available from the FHA or your lender if you buy a home, skip an inspection, and discover defects or other problems with the property after moving in.
Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.
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