Often in a home purchase, home inspections and appraisals are both common practice. So what’s the difference?
A home inspection is often a condition of a purchase and is usually done to protect the homebuyer. A qualified home inspector will assess the physical condition of the home and all of its major systems to help you determine if everything is in good working order. You typically receive a schedule outlining what repairs are needed and by when.
An appraisal is an objective assessment of the home’s value to confirm that the property is suitable as security for the mortgage. This is rarely a problem, but lenders and insurers take on their own financial risk, and they want to feel confident in the property before they approve the mortgage.
If you are thinking about homeownership it’s best that you understand the different processes that you need to follow from making an offer on a property and obtaining mortgage financing. Contact the experts at MiMortgage.ca at 1 866 452-1100 to speak to an expert for more information about mortgage financing.
