Home inspection

What It Means

A home inspection is an examination of a house's current condition by a professional inspector, most often arranged by a buyer before closing. The inspector describes the home's physical condition and points out the systems and parts that may need major repair or replacement. HUD stresses that it's separate from an appraisal, which estimates the home's value for the lender and doesn't replace an inspection.

How It Sounds at Home

• "The inspection turned up an old water heater."
• "We're waiting on the inspection report."
• "The appraisal came back fine, but we still got it inspected."

The Breakdown

When to get one

What the report means. An inspector tells you what shape the house is in and what may need major repair or replacement. HUD's example is a cracked foundation: a flaw that serious may lead you to walk away from the purchase. Smaller items help you plan repairs and budgetBudgetA plan for a set period, usually a month, that lists the money you expect to receive and how you'll spend or save it. See more after you move in.

Make it last between inspections. Once you own the home, a seasonal routine catches small problems early. The seasonal home maintenanceSeasonal home maintenanceHome upkeep sorted by time of year, so each job lands when the weather suits it and before the system it protects is needed most. See more page lists jobs by time of year from Fannie Mae, ENERGY STAR and others.

Good to Know

HUD's form tells buyers they have the right to examine a home with a qualified inspector, and that an appraisal, which the lender requires to estimate value, doesn't take the place of an inspection. The inspection also doesn't set the home's market value. For radon, the EPA's home buyer's guide explains testing when buying.

Related Terms and Categories

• Closing costs

  The fees and upfront charges you pay to finalize a mortgage, apart from the down payment, itemized on your Loan Estimate and Closing Disclosure.

• Down payment

  The share of a home's price you pay upfront in cash when you buy it; the mortgage covers the rest.

• Mortgage

  A loan used to buy or refinance a home, secured by the home itself and repaid in monthly installments over a set term.

• Radon test

  A measurement of the radon gas in a home's air, read in picocuries per liter (pCi/L). EPA recommends fixing a home at 4 pCi/L or more.

• Punch list

  A list of the small unfinished or faulty items left at the end of a building or remodeling job that the contractor must fix before the work counts as done.

• Seasonal home maintenance

  Home upkeep sorted by time of year, so each job lands when the weather suits it and before the system it protects is needed most.

Home maintenance and repairs