Are VA Home Appraisals and Inspections the Same?
The VA home loan benefits for active-duty military and veterans are worth the extra work needed to secure this type of mortgage. During the process, you’ll hear about both inspections and appraisals. The only similarity between them is they are professional visits to your new home. They have different purposes—one analyzes the physical health of the house, and the other evaluates its worth. Both of them protect you from purchasing a house with serious issues or paying more than what it’s worth.
An inspection isn’t required for a VA home loan, but it’s always a good idea to have one performed. An appraisal, however, is required.
An Appraisal Is An Evaluation Of The Home’s Worth
A VA appraisal is ordered to determine the home’s current market value. It involves a more in-depth evaluation than conventional loans require, as it must meet the minimum property requirements set by the VA. The first requirement is that this will be an owner-occupied residential property. Secondly, it must have functional heating, cooling, electrical, and plumbing systems. Third, all included appliances in the kitchen and laundry room need to be in good working order. Finally, the paint must be lead-free.
The appraiser looks for signs of poor home maintenance, such as moisture in the basement, cracks in the foundation, and mold or dry rot. They look for evidence of pests, such as rodents or termites. They’ll also inspect the roof to see if there are signs of damage or more than three layers of shingles on the roof.
After the physical analysis is complete, the appraiser researches the sales prices of similar homes in the neighborhood. They compare those to the listing price of the home you’re buying.
The inspector evaluates and presents all of the data, along with an assessed value of the home, in an appraisal report. If the listing price is higher than the appraisal, your lender may lower the loan amount to match it.
An Inspection Is An Analysis Of The Home’s Health
In all home inspections, a licensed inspector goes to the home for a roof-to-basement and everything in between analysis of the house’s physical health. The process takes several hours and involves investigating every area for any hazards, code violations, or problems.
These pros will turn on all the appliances, flush all the toilets, run water in the sinks and showers and flip on all the overhead lights and fans. They’ll check all the outlets for function and code violations. They’ll open and shut every window and door, including the garage door. Finally, they’ll search for structural issues by looking at the foundation, basement, and attic.
The inspector then prepares a detailed report listing any issues or hazards uncovered in the physical analysis of the house.
Make Sure You Get All Your VA Home Loan Benefits
At National Home Loans, we know all the mortgage benefits you deserve due to your service to our country. We understand the difference between inspections and appraisals and can help you understand all that goes into a VA home loan. Contact us today to speak with one of our experienced brokers.
