Appraisal: an Appraisal is a valuation of a home. The primary purpose is to ensure that the sales price of the house is comparable to its actual value.

 

Property Inspection: Usually completed for purchase transactions, the purpose of a Property Inspection is to search for damage to the home, hazardous situations, pests, and other things of that nature

 

NOTE: While the terms sound similar, an Appraisal and a Property Inspection are NOT interchangeable! They are wholly separate.

 

Title Search: A Title Search is made to search for any liens against the property. Examples of these are alternate claims or tax liens.

 

Mortgage Insurance: on any home loan transaction with less that 20% down, Mortgage Insurance (or MI) will be required.

 

Homeowner’s Insurance: Commonly abbreviated as HOI, Homeowner’s Insurance typically reflects fire and hazard coverages, although flood and/or earthquake coverage may be required as well.