Prior to closing, it is common for lenders to require inspections of the premises for various types of conditions in order to ensure that the structure is sound and that its systems are in good working order. Buyers may also request inspections to make certain that the structure and its operating systems and appliances do not have any critical defects that were not known at the time they decided to purchase the property.

Some of the many inspections that can be performed are as follows: Septic Inspections - The waste system is inspected by an engineer to verify the good working order of waste disposal; Well Water - Test can be performed by engineers to ascertain the quality of the water servicing the premises; Engineering - An engineer examines structural soundness and describes electrical, plumbing and similar systems; Pest Inspections - Private contractors inspect the premises for infestation and possible damage caused by termites and other pests.

Lenders often require additional inspecting when making particular types of loans. Construction Mortgage - When lending funds for new construction, the lender will require an inspection upon the completion of each phase of the construction before disbursing funds for the next phase. New Construction/Permanent Financing - If recently constructed, the lender may require verification that the construction is complete and that the premises are suitable for occupancy.

It is advisable for the buyer to re-inspect the premises immediately prior to the closing to be certain that it is essentially in the same condition as it was at the time the contract was executed. Buyers should check to see that no significant damage has been done to the premises in the intervening time and that the fixtures and items to be included in the sale have not been removed from the premises.