You made the same comment on another thread here in the open section:
My response is the same. Not true.
Lender cares if the collateral they are lending the money for is worth the investment. That’s why there are appraisers. The problem is that appraisers can only go on the external condition of the property and a comparative analysis of similar properties that have sold in close proximity in recent months.
A home inspection is a much more thorough investigation of the properties condition, but does not include the financial comparatives.
Any lender that wants to limit their risk, should ensure that they insist on both a financial appraisal and a home inspection. The Home Inspection should be first, requested by and paid for by the lender, and the results supplied to the appraiser.
This would provide the lenders with the greatest level of risk management.
Disclosure. I spent a long time working for the financial sector on risk management and to augment my services I am currently training as a real-estate appraiser, so I’m commenting based upon knowledge rather than supposition.