It’s raining, termites are swarming... similar in sound to a classic nursery rhyme, the rest of the verse might be “the pest control guy is definitely not snoring” around this time of year.

Instead he’s probably gearing up for a busy season. While I’m far from being an expert in this field, I do believe that after periods of heavy rain, ideal conditions are created for our tiny enemies.

If you’re looking to sell a home or purchase a new one, most likely your Realtor will carefully guide you through this particular termite inspection process with a licensed professional.

However, your lender plays a critical role in how these reports may or may not impact your loan approval as well.

For instance, depending on if you are using Federal Housing Authority- or Department of Veterans Affairs-insured financing or even a conventional option for that matter, there are certain property related inspections that could be required by your lender due to the type of loan product you are using.

Additionally, either an appraiser’s visual assessment of the home or a contractual related item in your purchase agreement or any “findings” in the actual termite report itself can trigger further reviews and follow-up reports too.

When a licensed pest control technician is assigned the task of examining your home, typically the inspection areas of it are the same, whether it’s for a purchase or a refinance transaction.

Unless there’s a special circumstance involved, your lender and the loan product you use ultimately determines if a request for repair or designation for a secondary review by a licensed contractor is needed. In some cases, no action is required.

As an example, if your termite report yielded findings for excessive moisture and inadequate ventilation in the substructure of your home, those “findings” should be fixed for your lender. But cellulose debris would not.

In the bathroom of your home, it’s a little different. For findings due to caulking, loose toilets or cracked countertops, no action is needed, although loose flooring and leaking faucets must be corrected. Any plumbing leaks or electrical issues wouldn’t only have to be cured they would have to be re-inspected by a licensed contractor.

If your home has a foundation, termite findings resulting from normal settling cracks don’t have to be fixed, yet excessive foundation cracks require the re-inspection by a specialized contractor.

Should part of a porch or step have direct earth-to-wood contact, it needs to be addressed assuming the area is found to contain termite infestation. Generally speaking, for any ventilation or attic spaces that show problems on your termite report, plan on fixing them.

Lastly, attached and detached garages or decks are high on the list of your lender as items that commonly show up on termite reports with issues which require them to be repaired.

Fences fall into the same category as well. Of course you could always find a lender or loan product that might be willing to over-look them, although you are likely to find that it’s just not worth it.

Chris Salese can be reached at chris@delsurmortgage.com or (707) 363-4439. He is a licensed California mortgage banker (NMLS 254469/1850 CA BRE 01377933/01215943) and equal housing lender.

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