This question comes up a lot. What is the difference between an inspection and an appraisal and do I need them?
An inspection is a professional that will go out and inspect the home. They’ll point out any deficiency about the home that you may want to know before you commit to buying it. They’re the individual who will essentially give you peace of mind about the soundness of the house. Their inspection however is not required to get approved for the mortgage.
The appraisal is a report that will determine the value of the home. This report is often based on similar homes within a mile radius that have sold within the last 12 months. They will make sure that the house is up to the standard of the mortgage that you’re applying for and if it’s not they will require you or the seller to make arrangements for repairs to be made before they will sign off on the appraisal. This report and service IS required to get approved for the mortgage.