Is Home Inspection Required for Mortgage?

Before purchasing a house, you must fulfill numerous requirements for evaluation. The question frequently asked by homebuyers regards whether mortgage approval depends on home inspection completion. 

The answer? Not always. Before obtaining a mortgage, the homeowner might need a home inspection although this requirement is not necessary. A home inspection should not be omitted from your buying process. The requirement of an inspection from lenders is not mandatory but you should get one since it prevents future problems. Read the following information regarding home inspections together with their significance in mortgage applications.

What Is a Home Inspection?

Home inspection experts perform professional evaluations on properties to determine their state of condition. A professional examines every aspect of a house which includes foundation elements alongside roof structure and safety elements and repair requirements. The goal? People need to understand everything about their future property before making a contract.

An appraisal differs from property inspections that frequently occur during real estate transactions since lenders usually demand appraisals. The market value assessment of the home occurs in an appraisal, but the physical property evaluation happens during an inspection.

Related: How Many People Can Be on a Mortgage Loan?

Are Home Inspections Ever Required for a Mortgage?

Lenders typically do not require a home inspection, but there are exceptions. Some loan programs and specific circumstances may call for it:

• FHA Loans – The Federal Housing Administration (FHA) doesn’t mandate inspections, but it does require a separate appraisal that includes basic safety and livability standards. If the home has serious issues, repairs may be required before loan approval.

• VA Loans – Veterans Affairs (VA) loans don’t require a traditional home inspection, but they do require a VA appraisal, which includes a minimum property requirements (MPR) checklist. If issues are found, the home might need repairs before closing.

• USDA Loans – Like FHA and VA loans, USDA loans require an appraisal with safety and condition standards, but a full inspection is not mandatory.

• Lender Discretion – In some cases, a lender may request a home inspection if there are concerns about the property's condition or if it’s an older home.

Why You Should Get a Home Inspection Anyway

Even if your lender doesn’t require it, getting a home inspection is one of the smartest moves you can make. Here’s why:

1. Avoid Costly Surprises

No one wants to move into their new home only to find hidden issues like faulty wiring, foundation problems, or a leaky roof. An inspection helps you avoid unexpected repair bills.

2. Negotiation Power

If the inspection uncovers problems, you can negotiate with the seller to make repairs, lower the price, or even offer credits at closing.

3. Peace of Mind

Buying a home is a big investment. A home inspection gives you confidence that you’re making a sound decision.

You Might Also Be Interested: Are Property Taxes Included in Mortgage?

The Difference Between a Home Inspection and an Appraisal

Some buyers assume that if their lender requires an appraisal, they don’t need an inspection. But these are two separate things:

• Appraisal: Determines the home's value to protect the lender’s investment.

• Inspection: Examines the condition of the home to protect the buyer’s investment.

While an appraisal might point out obvious issues, it won’t go as in-depth as an inspection.

What Happens If Issues Are Found During an Inspection?

If the home inspector finds significant problems, you have several options:

• Request repairs – Ask the seller to fix major issues before closing.

• Negotiate the price – If repairs aren’t an option, you may be able to negotiate a lower price.

• Walk away – If the issues are too serious and the seller won’t budge, you might decide to find a different home.

Should You Waive a Home Inspection to Win a Bidding War?

In competitive markets, buyers sometimes waive the home inspection to make their offer more attractive. While this might help you secure a home, it’s a huge risk—one that could cost you thousands in repairs later. Instead, consider a pre-inspection (a quick check before making an offer) or an "informational inspection" (where you still get an inspection but don’t make the purchase contingent on the results).

How to Choose a Good Home Inspector

If you decide to get a home inspection (which you should!), make sure you hire the right person. Here are some tips:

• Look for certified inspectors from reputable organizations like ASHI or InterNACHI.

• Read online reviews and ask for referrals.

• Make sure they provide a detailed report with photos.

• Be present during the inspection if possible—it’s a great way to learn more about your future home.

Final Thoughts

So, is home inspection required for mortgage? Not always. But should you get one? Absolutely. A home inspection is your best defense against costly surprises and gives you the information you need to make a smart decision.

If you're looking for expert guidance in securing a mortgage in the Rio Grande Valley, Movement Mortgage RGV is here to help. Our team is dedicated to making homeownership simple and stress-free. Schedule a consultation today and let us help you find the best mortgage options available.

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