| There are lots of reasons for first time home buyers | | | | A home inspector will crawl under the house, examine |
| to skip the appraisal, survey and home inspection, and | | | | electrical wiring and look for problems and potential |
| all those reasons are in the form of dollars. But keep in | | | | problems. After the home inspection, the home buyer |
| mind that all three of these services can save you | | | | will know if there are things that need to be fixed and |
| time, money and heartache in the long run. To fully | | | | you could even have some ideas of what repairs will |
| understand, take a look at what the home buyer will | | | | be needed in the near future. Many first time home |
| get for the money and how it can help you get great | | | | buyer grants also require both home inspections and |
| loan options - and a great home. | | | | appraisals. Again, the purpose is to protect both the |
| If you are looking for a first time home buyer home | | | | home buyer and the lender. |
| loan, you may be having some trouble with the entire | | | | The survey is done by a licensed professional and his |
| process. You've probably seen advertisements for low | | | | goal is to assure the home buyer and lender that the |
| loan rates, but when you become the home buyer, you | | | | property exists as it's described. A survey may not be |
| may have been surprised by the rates and terms of | | | | required in an urban area because boundaries are |
| loans you've been offered. Having an appraisal can | | | | typically very small and are usually well established. But |
| help assure the lender that the property is worth the | | | | in rural areas and especially with large tracts of land, |
| amount you're borrowing and that their loan is secure. | | | | surveys are very important. Most people can't tell the |
| Many home buyers confuse the appraisal, survey and | | | | difference between 10 acres and 12 just by looking, |
| home inspection. An appraisal is an expert's opinion on | | | | but a surveyor can determine that the property lines |
| the fair market value of a piece of property, home, | | | | are where the descriptions indicate, and that the |
| building or combination of these. It's defined as the | | | | amount of property actually available is consistent with |
| amount a "willing buyer would pay a willing seller" for | | | | what the home buyer is paying for. This can also |
| that property on the open market. While the property | | | | indicate when there are encroachments - other |
| may be worth much more than that to you as a home | | | | buildings, fences, etc. that are on the property but |
| buyer for some specific reason (it's next door to your | | | | shouldn't be there. |
| mother, has wheelchair accessibility or is simply your | | | | First time home buyers may be thinking that the |
| dream home), that's not what determines an appraised | | | | requirements like appraisals, surveys and inspections |
| value. | | | | make the process less than appealing, and you may |
| If you're looking at a particular first time home buyer | | | | very well be right. But keep in mind that this is a big |
| program, a home inspection may be required. The | | | | financial investment - the biggest most people will ever |
| appraiser will make an inspection of the home and | | | | make. Even if you have a perfect credit rating, a |
| property, but remember that appraisers are generally | | | | lender is taking a chance on a first time home buyer. |
| not trained in home inspection. The appraiser will | | | | Having appraisals, surveys and inspections cane make |
| typically note that he assumes all mechanical systems | | | | you as the home buyer and the lender more confident |
| (electric, heat/air, and plumbing) to be in good working | | | | that you're making a good decision. |
| condition. | | | | |