Looking to buy but confused

[Mark James II]

Hi All,

The Situation:
 We are looking to buy a house that has been foreclosed on that was in the middle of a rehab and has been stripped, cleaned and some tile put in. It is a pretty good deal and the location is perfect. We cannot hold both houses at the same time so we would have to sell our current house before we buy the second one.

After talking to the real estate agent and the lender, they both have said to "get (FHA APPROVED) contractors on-site, instead of an appraiser, to give me bids on what it would cost to get the house "FHA loan approved".

The Question:

Why would I get contractors on site to give me quotes on what needs to be repaired if they don't know what is required by FHA(or do they-Do they get the last word?) to be repaired? Why wouldn't I get an appraiser THEN get a contractor?

Thank you!