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Mortgage Glossary

Home Inspection

A professional evaluation of a home's condition — covering structure, systems, and safety — that helps buyers make informed decisions.

What It Means

A home inspection is typically conducted by a licensed inspector after your offer is accepted. The inspector physically examines the property and produces a detailed report covering:

  • Foundation and structure
  • Roof condition
  • Electrical systems
  • Plumbing
  • HVAC (heating/cooling)
  • Windows, doors, and insulation
  • Safety concerns

The inspection is NOT pass/fail — it's information. Armed with a report, you can:

  • Request repairs from the seller
  • Negotiate a price reduction
  • Walk away if issues are serious
  • Or accept the home as-is

Skipping an inspection to win a bidding war is risky — a surprise $30,000 foundation issue is not a fun discovery after closing.

Real-World Example

"The inspector finds the roof is 20+ years old and the HVAC is at end of life. You use this report to negotiate a $10,000 price reduction from the seller."

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Related Terms

Appraisal
Contingency
Closing Costs

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Definitions are for educational purposes only and do not constitute financial or legal advice.