Home inspection checklist for buyers

A home inspection is a detailed visual examination of the physical condition of the property you’re buying. It’s done by a licensed home inspector whose primary goal is to identify any issues, defects or potential problems with your new home. You hire the home inspector, so they work for you, and their report is for your benefit.

While a home inspection is optional for most mortgage loans, it’s highly recommended. By revealing significant repairs needed or general maintenance required to keep your home in good condition, the main advantage of a home inspection checklist is saving you from costly surprises down the road.

According to the American Society of Home Inspection (ASHI), to help homebuyers better understand the property they’re buying, a home inspector looks at the interior and exterior of the home and covers “the condition of the home’s heating system; central air conditioning system (temperature permitting); interior plumbing system; electrical system; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; and the foundation, basement and structural components.”

Most home loans typically require a professional appraisal, including refinances. The appraisal primarily considers recent sales of similar properties in the area, the property’s condition, and any upgrades or improvements. An appraisal helps determine fair market value and the amount of loan-to-value. It also helps to ensure you aren’t paying too much. As your lender, we’ll choose and hire the appraiser during the mortgage process after your purchase agreement is signed.

• Drainage flows away from the house
• No standing water is present
• The septic tank is not leaking
• Branches from nearby trees are not touching or hanging over the roof
• The yard is in good condition
• Fences, decks, garages and sheds are in good condition
• Railings on decks and stairways are strong and secure
• Driveways and patios are in good condition
• Downspout drainage is positioned away from the home

• Visible foundation is in good condition
• Ridge and fascia board lines are straight
• Sides of house are not bowing or sagging
• Door and window frames are square
• Siding is not cracked or damaged
• No cracks in masonry veneers
• No dents or damage to vinyl siding
• No stains on exteriors

• Shingles are not bent, molding or flaking
• Flashing is present around roof penetrations
• Gutters are not sagging or rusted
• Chimneys are straight and flashed correctly
• Exterior vents are clear

• Windows are in good condition
• Doors are functional and not damaged
• Door frames are in good condition
• Fireplace flue is clean and functional
• Flooring is in good condition, not stained
• Paint is not chipped
• Light switches are functional
• Cabinets are functional
• Smoke detectors are working
• Carbon monoxide detectors are functional
• Stairway tread is in place
• Stairway handrails are secure
• Crawl spaces are adequately vented
• Garage door opens and closes as intended
• Basement is in good condition
• Attic has no signs of decay or damage

• Electrical outlets are functional and grounded
• Insulation is adequate
• Pipes are not leaking
• Water pressure is steady
• Plumbing is fully operational
• Water heater functions adequately
• Electrical wiring is secured and working properly
• Service panel is not overheating
• HVAC system operates well throughout home
• Air filters are clean
• Ductwork is in good condition
• Toilets function properly

• Structural damage
• Water damage
• Roof damage
• Electrical system damage
• Plumbing issues
• Pest infestations
• HVAC issues

Source: Step by Step Guide to Home Inspection by the ICA.

An FHA loan is insured by the Federal Housing Administration (FHA) and offers options to borrowers with lower minimum down payments and credit scores. While FHA loans may be easier to qualify for than conventional loans, the appraisal requirements are usually stricter.

Only certified FHA appraisers can perform appraisals for FHA loans. In addition to determining the home’s current market value, an FHA appraiser analyzes your property to make sure that it meets the minimum property requirements and is safe and livable. If the appraiser finds items that make the home unsafe or unlivable, repairs must be made before the FHA loan can move forward.

While a basic inspection is built into the FHA loan appraisal process, it’s primarily concerned with health and safety issues. However, to safeguard themselves from expensive future repairs, FHA borrowers are strongly encouraged to hire a home inspector to complete a full and comprehensive home inspection checklist.

VA loans, also known as Veterans Affairs mortgages, benefit veterans, service members and surviving spouses. They offer lower interest rates than traditional mortgages and allow you the advantage of borrowing up to 100% of the property’s value with no private mortgage insurance (PMI) requirement.

After applying for a VA loan and making an offer, a VA-approved appraiser will appraise the home to ensure it meets minimum property requirements (MPRs). The over thirty requirements range from remediating lead-based paint to rules concerning safe year-round access to the home. While the appraisal is required, following a VA home inspection checklist is not. However, it’s recommended you hire a home inspector to check for any major defects before you purchase a home.

No home is perfect, and not all the problems identified on your home inspection report need to be fixed, such as normal wear and tear. A home inspector will indicate what components or systems are in need of major repairs or replacement.

When deciding what to include in the offer contract on your home, it’s common to have a contingency clause related to the home inspection. Contingencies offer protection because they allow you to change your mind on a home sale if something that’s specified ahead of time in the contract doesn’t work out. In the case of an inspection contingency, the seller may be willing to pay for fixes if it means moving forward with the sale.

When it comes to seller-funded repairs, states have laws that dictate non-negotiables for significant issues. As Move, Inc. explains, “Sellers have a legal obligation to either repair or disclose serious issues with the home. If the repair request is a big one—and it’s not a surprise to them—they’re almost always going to be required to spring for the cost or lose the sale.”

For other issues, they suggest focusing on the issues that are most important to you rather than presenting the seller with a “laundry list of repair requests.” If you don’t want to risk losing out on a property, you may decide to pay for some or all of the home fixes yourself.

Once the negotiated repairs are completed, NAR recommends getting the final signoff from your home inspector. This may be an additional cost, but it will give you confidence that the work has been done.

It’s never too early to reach out to a loan officer about your homeownership goals. Our loan officers will use their expertise to guide you throughout the homebuying process when you’re ready. Use the form on the right to have an experienced loan officer contact you.