Step 13: Schedule the Home Inspection
Hire a licensed inspector within your inspection period, then decide whether to ask for repairs or credits.
A home inspection is a visual examination of the home's condition by a licensed or certified inspector. It's for your protection. The lender doesn't require it, but your inspection contingency depends on it.
Schedule right away
Inspection periods are often 7 to 10 days from ratification. Book the inspector the day you go under contract, and leave time to read the report and negotiate.
What a general inspection covers
- Roof, attic and visible structure
- Foundation, crawlspace and drainage
- Electrical panel, outlets and wiring
- Plumbing, water heater and visible pipes
- Heating and cooling systems
- Windows, doors, insulation and ventilation
- Built-in appliances
It costs a few hundred dollars and takes two to four hours. Attend if you can.
Extra inspections to consider
- Wood-destroying insect (termite) inspection
- Radon testing
- Sewer scope for older homes with trees near the line
- Septic, well water, mold, chimney, pool or a structural engineer, as needed
Using the report
Every report lists issues. Focus on safety, water and big-ticket systems. Then choose:
- Proceed as is.
- Send a repair request: ask the seller to fix items, give a credit or reduce the price.
- Cancel within the contingency period and get your earnest money back.
Credits are often simpler than repairs, since you control the work. Lenders may limit credits to your actual closing costs. If the home is sold as is, you may still be able to inspect and cancel, but the seller won't make repairs.
Next: the appraisal.
Your next move, by loan program
- Conventional: Conventional loans rarely require repairs unless the appraiser flags a safety or structural issue. The inspection is for you. Track my inspection
- FHA: FHA appraisers flag safety and soundness problems, which must be fixed before closing. Use your inspection to find them first. Track my inspection
- VA: Many lenders require a wood-destroying insect inspection on VA loans in certain states. VA rules let the seller pay for it. Track my inspection
- USDA: USDA appraisals follow standards similar to FHA's, so serious defects need fixing before closing. Track my inspection
- Jumbo: Larger homes often justify specialist inspections: roof, pool, septic or a structural engineer. Track my inspection
- Investor: For a flip or rental, get repair estimates during the inspection period. They feed your rehab budget or rent assumptions. Track my inspection