A professional inspector's review of the home's condition before you close. Not required by lenders but strongly recommended for buyers. Typical cost: $400-$700.
A home inspection is separate from the appraisal, and it's for your protection — not the lender's. You hire a licensed home inspector to do a thorough walk-through of the property: roof, foundation, electrical, plumbing, HVAC, water heater, attic, appliances, signs of water damage, pest issues, anything visible.
The output is a written report (often with photos) detailing every issue they found, sorted by severity. Major issues become negotiating leverage: you can ask the seller to repair them, give you a credit, or in serious cases, walk away (if your contract has an inspection contingency).
Inspections are optional but strongly recommended for any home that's not brand new. Cost runs $400–$700 for a single-family home, paid by the buyer at the time of inspection. Worth every dollar.
Example
Your home inspector finds an aging roof (5-7 years of life left), an outdated electrical panel, and minor water staining in the basement. You negotiate $4,500 in seller credits to repair the panel and address the moisture issue before closing.
Also known as
home inspection, property inspection, buyer's inspection
Source:
CFPB