Unless you are confident that your purchase price is below appraised value, I would absolutely have an appraisal done. It will cost you in the vicinity of $350 which is nothing compared to the price of the home. If it doesn't appraise, get back to the negotiating table.
The benefit of the homepath loan is not having to do an appraisal. The appraisal inspection could end up opening a can of worms, if there is any visible damage noted by the appraiser, which will have to be fixed prior to closing the loan. So, in addition to incurring an appraisal fee of a few hundred dollars, you run the risk of needing to fix the property before the close of escrow. If you are having serious doubts about the value of the property, then you may want to consider doing the inspection. Also, if you know there is no damage to the property that could be a problem, the inspection can't hurt, but its just an unncessary fee that you've now incurred.
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