Inspections are optional, although usually encouraged, whereas appraisals are typically required to obtain a mortgage loan.

An inspection determines the condition of the home and identifies any items that need to be repaired. There are many different types of inspections, such as: general inspections, pest inspections, structural inspections, roof inspections, lead-based paint inspections and many more.

The most common and recommended inspection inspects the 5 mechanicals of a home, electricity, plumbing, roof, foundation, and HVAC. 

An appraisal is often required (unless an Appraisal Waiver is received) to determine the fair market value of a property based on similar properties in the area so that mortgage lenders are not lending more than the collateral (subject property) is worth.