You are so looking forward to buying a home. You have been pre-approved for a traditional home loan, found a property that suits your lifestyle and is in the midst of the next process. Somewhere in the middle of the entire paperwork, a question appears:

Does a home inspection go with a conventional loan?

It is a smart question and an important one, too. Let’s discuss it so you can go forward confidently, whether you’re a first-time buyer or a seasoned homeowner looking for another home.

First Things First: A Conventional Home Loan Explained

A conventional home loan isn’t guaranteed by the government. Different from FHA or VA loans, it is lent by private lenders (banks/credit unions) and based on guidelines provided by Fannie Mae & Freddie Mac.

These loans are the most popular mortgages in the U.S. In 2023, as many as 73% of all new home loans were conventional.

They are popular in part because they often come with fewer constraints, particularly if you have good credit and you earn a steady income.

Home Inspection vs. Home Appraisal: Don’t Confuse The Two

Before venturing into the need for inspections, let us clear up a common confusion first.

A house appraisal is often needed by the lender. It values the home to ensure the loan’s value is not greater than the value of the house. The lender is forced to do this in order to protect their investment.

A home inspection, on the other hand, is a thorough inspection of the home’s plumbing, roof, electrical, foundation, HVAC systems, and other areas. It is done to help you, the buyer, make an educated choice.

Is A Home Inspection Required For A Conventional Loan

Here’s the short answer: a home inspection is not necessary for a conventional loan.

But, and this is a huge “but,” it’s highly recommended.

It is like purchasing a used car without looking under the hood. Even though you are familiar with the car’s foreign brand, without an inspection, you may be in for a nasty surprise a few months later.

Why You Should Still Get A Home Inspection

Even if your lender does not require it, failure to do the inspection can be dangerous. Here’s why:

Uncover Hidden Issues

A lot of grave issues cannot be seen with a cursory walkthrough. A certified inspector will notice such things as:

Roof leaks.
Termite damage.
Faulty wiring.
Foundation cracks.
Plumbing issues.

These can be fixed up at the cost of thousands. An inspection makes it possible for you to pick them up early.

Negotiate Repairs Or Price

If the inspector identifies trouble spots, you may be able to:

Request the seller to make the repairs.
Request a credit at closing.
Renegotiate the purchase price.

This is a competitive market that gives you the leverage you would not otherwise have.

Plan Future Maintenance

Even if all is okay, the report provides you with a to-do list for the future. You will understand what systems to replace in the next 5-10 years.

That’s peace of mind that’s impossible to acquire through guesswork.

What Would Happen If You Missed It

Suppose you choose to save money and avoid the inspection. Well, yes, it could reduce your initial costs, but what if the furnace blows two weeks after you move in? Or if there is black mold in the attic?

The average cost to fix foundation problems is between $2000 and $8000. Depending on the size and materials, replacing a roof can cost on average $11,000 or more.

Now compare that to the average home inspection cost, which is $300 to $500. It’s a little investment to secure probably your biggest financial asset.

Situations In Which An Inspection May Be Non-negotiable

Although an inspection is not mandatory for the loan, some cases may be such that an inspection will be mandatory in practice:

Depending on the repairs/upgrades, some HOA or condo regulations may require inspections.
Home insurance companies may require a pre-inspection before issuing coverage, particularly for older houses.
You’re going for a fixer-upper and must have an idea of the entire process of repairs.

In addition, your real estate agent is likely to strongly recommend it (and he or she will have sound reasons to do so).

What To Expect During the Inspection

Home inspection will typically take 2–3 hours. The inspector will check:

Roof and gutters
Plumbing and electrical systems.
Heating and cooling systems.
Foundation and structural elements.
Windows, doors, insulation, and more.

Normally, 24–48 hours after the inspection, you will receive a detailed report describing the state of each part of the house (with pictures and recommendations).

Final Thoughts

Is a home inspection necessary for a conventional loan? Technically, no. But practically? It’s one of the smartest decisions you can make.

An average home loan does not require an inspection, but that is not to say you should ignore it. A few hundred dollars can reveal expensive problems, help you make wiser decisions, and help you sleep well at night, knowing that your house is safe as day.

Thousands of homebuyers have benefited from BrickKicker’s services, which ensure that their investments are safeguarded through careful and dependable home inspections.

Our certified inspectors do not tick boxes but dig deep to help you see the true picture of your future home’s condition. Whether you are looking for a regular home loan or simply need peace of mind, we’ve got you covered.

Get your home inspected by The BrickKicker today because smart people never overlook the details.

Is a Home Inspection Needed for a Conventional Home Loan