What? Home inspections are a good thing aren't they?
Of course home inspections are a good thing. Any smart buyer would get one. It only makes sense to make sure you understand the condition of a purchase as big as a home. Why beware?
Because, your lender could require a copy. Again, this is not automatically a bad thing. The lender is concerned about the condition of the collateral on your loan. They want your home ownership to be successful, and not end up as one of the many that are being foreclosed on. They also don't want to end up paying for repairs that a buyer thought they could handle, but didn't when the house ends up being foreclosed on.
So, when can it be a bad thing? When the lender goes beyond the scope of the loan. EVERY house has a few issues. Many buyers understand this and are willing to tolerate a few small things. But, your lender may not. The lender should be concerned with "Safety and Soundness" issues. In other words, is the house safe or a hazard for people? Is the house "sound", or do all it's systems to protect it's longevity function properly (i.e. does the roof leak? is the electical ok? etc.)? These are reasonable requirements. If the house has a leaky roof, an unsafe deck or termites, it makes sense that the lender would require these problems be remedied.
But, some "underwriters" (the people who approve or deny loans), go beyond safety and soundness. This can be an issue. Requiring the nail holes from where pictures have been hung is extreme and can endanger your transaction. Many small issues like this can be required by a "particular" underwriter.
Three answers to this problem:
1 - Make sure your home inspector creates a separate pest and dry rot report. This ensures that the lender doesn't have to request the whole report when the lender just wants to see the pest and dry rot report.
2 - Don't hide flaws, by not disclosing them, or by trying to hide earnest money addendums that address issues. A borrower certifies that there are no "omissions" of important facts on the loan application. Mortgage fraud is very serious and dealt with via fines & prison or both!
3 - Make sure you deal with a lender who understands that safety and soundness are the issue, not perfection!