After you make an offer on a house, you’ll more than likely want to schedule a home inspection.

A home inspection typically costs between $300 and $500, but you’re spending this money upfront to protect yourself from unexpected problems later. A home inspector can help you decide whether the home is in acceptable condition for you. You also may be able to negotiate for the sale of the home to be contingent on the results of the inspection.

• What does a home inspector do?
• What does a home inspector look for?
• What fixes are required after a home inspection?
• What’s the difference between a home inspection and appraisal?

What does a home inspector do?

Home inspectors personally verify the safety and condition of the home’s structure, construction and mechanical systems. They’ll also assess the heating, ventilation and air conditioning system, as well as the plumbing and electrical systems. The inspection report will typically note any repairs that might be necessary and the remaining useful life of major systems, equipment and finishes.

As a homebuyer, you have the right to request a home inspection. Completing an inspection isn’t a legal requirement when buying a house, but it’s your chance to learn more about the property’s condition through the eyes of a trained home inspector.

Some states require home inspectors to be licensed through a local licensing authority. Certain states may require inspectors to undergo certification through a professional organization, like the American Society of Home Inspectors or the International Association of Certified Home Inspectors. These organizations enforce a standard of procedures, training and examinations as well as a code of ethics.  

Keep in mind that the inspection is independent of the lending process. If you decide to order a home inspection, you will need to pay for it. Scheduling a home inspection as soon as you can is ideal so you have ample time to address any issues that arise from the report.

What does a home inspector look for?

On the day of the home inspection, the inspector will walk through the property, noting the condition of the various components of the home, including any issues with the foundation, roof and electrical, plumbing or ventilation systems.

Although it’s not required, attending the inspection can give you greater insight into the condition of the home. If an inspector discourages your presence, consider that a warning to look elsewhere.

How long does a home inspection take?

An inspection for a standard single-family home takes about two to three hours. You can expect to receive the inspection report within 24 hours, but the time frame may vary.

What fixes are required after a home inspection?

No mandatory repairs or corrections are required after a home inspection, but you may have important decisions to make.

When negotiating with the seller, you might consider asking to include an inspection contingency in the purchase agreement. This protects you as a buyer. If the home inspection turns up problems, you’ll need to decide whether those issues are acceptable as-is or if you want to negotiate for corrections. You also could decide to walk away from the deal.

What’s the difference between a home inspection and appraisal?

There are important differences between a home inspection and a home appraisal.  

A home inspection assesses the condition of a home and is meant to primarily serve the buyer. On the other hand, an appraisal — which is an independent assessment of a home’s market value — is conducted to help the lender set the loan amount based on the fair market value of the home. This value is determined by many factors, including the value of comparable homes in the area.

Appraisals also protect the lender by verifying that the home, which acts as the collateral for the mortgage loan, is worth the asking price.

Another difference? The appraisal doesn’t go into the same level of detail as a home inspection. The appraisal tells the lender how marketable the home is and that it meets minimum standards. The inspection tells the buyer about the home’s condition in greater detail.

Next steps

Scheduling a home inspection before buying a home helps you understand the existing condition and potential repairs as the future owner of the property. This could potentially save you thousands of dollars in repairs later.  

Plus, if your purchase contract at closing includes a home inspection contingency, you can cancel the sale — without penalties — if you’re dissatisfied with the inspection report outcome.

If you’re unsure where to find a reputable home inspector, ask friends and family for referrals. You can also explore inspector listings through professional organizations, including the American Society of Home Inspectors or the International Association of Certified Home Inspectors.

Updated December 20, 2023

This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Written by: Jennifer Calonia

Pros

• Personal loan amounts range from $1,000 to $40,000
• Option to have LendingClub pay your creditors directly
• Co-borrowers allowed

Cons

• Origination fee of up to 8%
• Loan funding can take from 48 hours to a few days

What you need to know about a LendingClub personal loan

LendingClub is an online bank that offers personal loans along with banking services and other products, like small business loans, auto refinancing, and loans for education or medical expenses.

The San Francisco–based company’s personal loans can be used for paying off credit card debt, home improvements or other major expenses.

Loan amounts range from $1,000 to $40,000 with repayment terms of 24 to 60 months. LendingClub charges a personal loan origination fee of up to 8%.

You can apply for a loan with a co-borrower if you don’t have a great credit history. A co-borrower with strong credit might help you get a higher loan amount or a lower interest rate than you’d otherwise get if applying alone. 

Funds are typically available within two days, and you can opt to have LendingClub pay off your creditors directly if you’re consolidating debt. For example, if you’re using the personal loan to pay off revolving credit accounts, like multiple credit card balances, LendingClub can send the loan funds straight to your card issuers to pay off your balances.

Origination and late fee

Although LendingClub doesn’t charge an application fee or a prepayment penalty, it does charge other fees. LendingClub personal loans come with a loan origination fee of up to 8% of the total loan amount, which is based on your credit.

The loan origination fee will be deducted from your loan funds. For example, if you’re approved for a $5,000 personal loan with a 3% origination fee, you’ll receive $4,850.

But that’s not the only fee that LendingClub charges. If you’re more than 15 days late on a payment, you’ll be charged a late-payment fee.

Range of loan terms offered

You’ll have some options for repaying a LendingClub personal loan — from 24 to 60 months. Check that you can afford the monthly payments, and remember that you can pay off your loan early without penalty.

Check your potential rate with a prequalification application

Want to get an idea of your potential personal loan rate with LendingClub? You can check online — and get estimates of the interest rates you might qualify for with a personal loan prequalification — before you apply for a loan. To provide you with estimated rates, LendingClub runs a soft credit inquiry, which won’t affect your credit scores.

If you qualify, you may receive multiple loan offers. Keep in mind that LendingClub APRs can range from the high single digits to nearly 36%.

If you proceed with a loan offer, you’ll complete an online application, which will result in a hard credit inquiry. This can temporarily lower your credit scores. And remember that prequalification isn’t a guarantee of approval or terms.

A closer look at a LendingClub personal loan

If you’re considering a personal loan from LendingClub, here are some other details to know.

• Funding time — You may receive your loan funds in as little as 48 hours, but the process might take longer.
• Personal support — LendingClub offers account support for its personal loan customers by phone during early morning and typical business hours.

Who is a LendingClub loan good for

A LendingClub personal loan may be an option if your credit is pretty good, or if you have a co-borrower with solid credit. If you want to consolidate debt and make the process easy, this lender can help with direct payments to your creditors.

But remember that LendingClub charges origination and late-payment fees.

How to apply with LendingClub

To qualify for a LendingClub personal loan, you must be at least 18 years old, have a bank account, and be a U.S. citizen, a permanent resident or be living in the U.S. on a long-term visa.

If you prequalify for a loan through LendingClub, you may receive multiple loan offers. If you choose a loan offer, you’ll complete an online application. At this point in the application process, you’ll need to provide some additional details, like …

• Address
• Social Security number
• Income and employment verification
• Address verification (photo ID or utility bill)

From there, LendingClub will review your application and additional information to make its decision. If approved, you’ll receive your money via direct deposit into your bank account, unless you requested a balance transfer loan in which the lender will forward funds to the creditors you specify.

Not sure if LendingClub is right for you? Consider this alternative.

• Avant: If you need your loan funds quickly, Avant may get your money to you as soon as the next business day.