VA Appraisal vs Home Inspection

Many are confused about the difference between a VA appraisal and a home inspection. A VA appraisal is mandatory for all VA loans. The borrower is required to pay for it and it has a direct affect on the loan. It is used to establish the fair market value of a home as well as make sure the property meets VA standards.

On the other hand, a home inspection is optional for an Interest Rate Reduction Refinance but mandatory for a Cash-Out Refinance.. It is a full analysis of a home intended to find any issues or flaws in construction that may be concerning to the potential home owner. It is always suggested to seek a qualified home inspector’s advice on a home before you make any final decisions to move forward with it. The VA appraisers that come out are not trained on to look for asbestos and other foundational defects that can affect you and the home later down the line.

This is why the VA stresses that the final judgment on a home is with the buyer. They cannot guarantee whether or not it is a good investment. You should be sure to shop around and do your homework to make the most educated decision possible. So even though a home inspection is optional on some loans it should be a part of your home buying process to make sure you are making the right decision.


Recent Posts

Mortgage Loans for Gig-Workers, 1099, Social Media Influencers, Self Employed and More!

While the gig economy has been around for a while, since COVID hit, it has completely blown up. In 2020, the gig economy grew by 33%, expanding 8.25x faster than the US economy as a whole. The same year, 2 million Americans tried “gig work” for the first time, and 34% of the US workers Read More…

February Market and Company News!

Jobs report gives Fed green light for more rate hikes The Federal Reserve is almost certainly raising interest rates in March. The only question now is by how much. The strong January jobs report is the last piece of evidence the Fed needs to show that inflation pressures are not going away anytime soon. With Read More…

Demographics are changing for Remote Workers- Including Income Taxes and Lifestyle changes

Where we live has been dictated by where we can find a good job. That truism has defined much of where Americans reside — clustered in and around lucrative job markets.  Working remotely isn’t just another perk in a benefits package, it’s the opportunity to move freely and still continue the same career, ideally with Read More…