The Ultimate Guide to Home Inspections and Appraisals
Buying a home is one of the most significant investments many of us will ever make. To ensure it’s the right one, it’s critical to understand two key steps in the homebuying process: the home inspection and the appraisal. That’s why People Driven Credit Union dedicated an entire Homebuyer Bootcamp session to both topics—complete with two videos from real estate and mortgage experts.
Watch Both Videos
These sessions are available on demand—whether you’re a first-time buyer or need a refresher, you’ll gain valuable insight into making a smart, safe purchase.
Home Inspections: What You Need to Know
A home inspection is a top-to-bottom review of a property’s condition. Think of the inspector as your house’s primary care physician—evaluating everything from the roof to the foundation to ensure your future home is healthy.
Why Inspections Matter
- Reveal safety hazards and hidden issues before closing
- Can influence negotiations or even help you walk away from a bad deal
- Help you budget for future maintenance and repairs
What Inspectors Check
- Roof, siding, and exterior infrastructure
- Plumbing, HVAC, and electrical systems
- Interior walls, windows, doors, and ceilings
- Foundation, crawl spaces, and overall structure
Don’t Overlook Radon Testing
Radon is a naturally occurring gas that can be harmful at high levels. Experts recommend testing every two to five years. Even homes next door to each other can show very different results, so every home should be tested.
The Appraisal Process: What It Is and Why It Matters
While inspections protect the buyer, appraisals primarily safeguard the lender. An appraisal ensures the home is worth what you’re paying for and what the bank is lending for it.
How Appraisals Work
- Property Inspection: A certified appraiser examines the home’s size, layout, and condition.
- Comparable Sales: The appraiser compares recent home sales in the area to estimate value.
- Value Report: The appraiser submits a final value assessment, which your lender uses to determine your loan amount.
Appraisals vs. Inspections: What’s the Difference?
- Inspections focus on condition and safety—think leaks, wiring, and roof issues.
- Appraisals determine market value and are required for mortgage approval.
Who’s Involved in the Appraisal Process?
Most lenders work through an Appraisal Management Company (AMC) to ensure unbiased evaluations. Appraisers may be licensed or certified and must follow strict guidelines for fairness and accuracy.
Common Misconceptions
- Appraisals are NOT the same as inspections.
- It is not uncommon for an appraisal to be lower than the purchase price, and this can lead to negotiations or changes in financing.
- Appraisers are neutral third parties, not working for the buyer or seller.
Metro Detroit Market Insight
According to our experts, Metro Detroit continues to show stable property values with modest growth, especially during the spring and summer. As values increase, more homeowners may seek updated appraisals to understand their equity position.
Conclusion
Home inspections and appraisals are essential tools to protect your investment. Together, they help ensure your future home is safe, fairly priced, and a wise long-term decision. If you haven’t yet, watch the full Bootcamp videos above—you’ll walk away more informed and confident in your homebuying journey.
FAQs
How often should I get a home inspection?
It is a must to check the condition of the home before purchasing it. Periodic checks every few years—especially if issues arise—are also smart.
Is radon testing really necessary?
Absolutely. It’s easy to overlook but extremely important for long-term health and peace of mind.
Can an appraisal affect my loan approval?
Yes. If the appraisal comes in lower than your offer, it may affect how much a lender is willing to finance.
What qualifications should I look for in a home inspector?
Look for certification from groups like ASHI or InterNACHI, and check reviews from previous clients.
Still have questions? Reach out to People Driven Credit Union—we’re here to help you drive your homeownership dreams forward.
Join Us for the Next Session
Next up in the Homebuyer Bootcamp series is Closing Day & Beyond. Learn how to prepare for a smooth closing, make your move-in stress-free, and maintain your investment for years to come.
Watch Homebuyer Bootcamp: Closing Day & Beyond
Disclosures
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Equal Housing Lender. Member First Mortgage, LLC (MFM) NMLS ID# 149532. All loans are subject to credit approval. Terms and conditions apply. Program availability is subject to change without notice. |
Available to all members using a conventional mortgage loan program on a purchase transaction with People Driven Credit Union in the State of Michigan. Not eligible on multi-unit properties, condos, townhomes, or manufactured houses. The Loan Example is current as of 9/9/2025 and based on a $200,000 loan amount with a conventional 30-year fixed rate term (360 monthly principal and interest payments of $1,231.43); 0% Down Payment; 6.25% Interest Rate with an Annual Percentage Rate (APR) of 6.465%. Rates quoted assume excellent borrower credit history. Payment example does not include taxes and insurance; the actual payment obligation will be higher. The cost of Private Mortgage Insurance (PMI) is waived as part of this promotion, to be paid by the Lender. This is not a commitment to lend. All lending products are subject to credit and property approval. Additional restrictions may apply. Member First Mortgage, LLC (MFM) is a partner of People Driven Credit Union. Michelle Dzon #401292, is authorized to act as agent of People Driven Credit Union (24333 Lahser Road, Southfield, MI 48033 | (248) 263.4100 | NMLS ID: 776727) and is authorized to represent Member First Mortgage, LLC, a licensed Mortgage Lender/Servicer (Corporate Office: 616 44th Street SE, Grand Rapids, MI 49548 | (616) 538.1818 | NMLS ID: 149532). For licensing information, please visit www.nmlsconsumeraccess.org. Equal Housing Opportunity.
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We conduct annual independent testing of our mortgage compliance in accordance with the SAFE Act (Reg G) requirements.
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People Driven Credit Union is an Equal Housing Opportunity Lender NMLS #776727 |
