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.


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