My question to you is, why do you ask? Did an underwriter review an appraisal on a home you are buying and did not like, and gave the reason that it was unlivable? Or are you looking at a condo that you may think may be deeded unlivable by mortgage lenders? That'll help you get more specific answers.
Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
The lender finds out about the condition of the home through an appraisal, they do not review your home inspection (99.9% of the time they don't review it). On the appraisal if there are items which are called "deferred maintenance" (meaning items that need fixing) they will be noted by the appraiser. Further, if you are obtaining FHA, VA or USDA financing, the appraiser will note anything that prevents it from meeting the property requirements that FHA, VA & USDA impose (called "minimum property requirements", or MPR's).
Once the underwriter at the lender reviews the appraisal, they will see those items, and anything that prevents a home from meeting the MPR's will need to be taken care of, "cured" as it's called, and any deferred maintenance will be subject to the lender's guidelines. Missing baseboard heaters & faucets would be an issue for both the MPR's & would be called out as deferred maintenance, so you could expect they will need to be taken care of.
You or the seller can take care of them, meaning after the appraisal is complete, but before you close on the home, they can all be installed/repaired/etc - at a cost to you or the seller. You would want to discuss the probability of the repairs being done as part of your offer.
Or you can qualify for a rehab/remodel loan, such as FHA's 203k Rehab loan, or Fannie Mae's HomeStyle Renovation loan. These loan programs are used to finance the purchase of the home + the cost of repairs + other improvements (meaning if the appliances could use upgrading, floor isn't so great looking, etc.). Since not everyone wants to buy a home that needs some TLC (Tender Loving Care) that is why in general they are less expensive, and you can also increase the value of your home by making the repairs & improvements, in some situations even over the cost of the repairs themselves. If you know that the home will need repairs going into things, you should plan on qualifying for a rehab/remodel loan and also have someone trained go through the home with you to identify which items will likely be called out to be repaired. You'll need a good real estate & loan officer in order to have as stress-free of a process as possible, as it is more involved than the typical purchase.
FHA's 203k rehab program: http://portal.hud.gov/hudportal/HUD?src=/program_offices/hou
Fannie Mae HomeStyle (there is a recorded presentation within the .pdf link that is helpful): https://www.efanniemae.com/sf/mortgageproducts/pdf/hsrenofacts.pdf
If you need a loan officer to help with those rehab programs then Andrew Adams is who I'd recommend, he went to University of Rhode Island and is up in Massachusetts: http://www.trulia.com/profile/203kspecialist/overview/