The requirements for house loans vary from lender to lender, but you may be asked to pay several fees. Appraisals, surveys and home inspections are often required, depending on the value, type and location of the property you are hoping to buy. Each covers a different set of criteria and provide different assurances.
An appraisal is used to arrive at the market value of your house to assure the lender that your house loan amount is not greater than the value of your house. An appraiser might note some problems, but will generally assume that all the mechanical items are in good working order and that there are no structural issues that weren’t evident during his general inspection.
A home inspection can sometimes be required by the lender, but also might be a good idea for the person taking out a house loan. The professional house inspector will check for problems that might escape your notice, or that might be hidden from your view.
A survey is often required if the house loan is for rural property that includes a tract of land. A surveyor’s job is to be sure that the legal description matches the property and that there are no evident encroachments.
While it might seem like a lot of money to pay for these services as you are taking out a house loan, consider the benefits to you. You’ll have an appraisal outlining the positive and negative points of the property along with the current market value, and you’ll have the assurance that the property is what it is supposed to be with no major problems.
