Definition
A thorough examination of a property's condition performed by a licensed inspector before purchase. The inspection covers the structure, roof, foundation, electrical, plumbing, HVAC, and other major systems. A typical home inspection costs $300-$500 and takes 2-4 hours. While not required by lenders, a home inspection is strongly recommended and can reveal costly problems that may affect your purchase decision or negotiating position.
Related Mortgage Terms
- Appraisal
A professional assessment of a property's market value conducted by a licensed a...
- Closing Costs
Fees and expenses paid at the finalization of a real estate transaction, typical...
- Earnest Money
A good-faith deposit made by the buyer when submitting an offer on a home, typic...
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
Understanding mortgage terminology helps you compare loan offers and make informed decisions. Use our mortgage calculator to see how these terms affect your monthly payment.