Pest inspection: Is it a requirement to get a mortgage?

Whether you’re a new or longtime homeowner, you don’t want pests in your home. Pests can cause serious damage to a property if not treated quickly. This includes rats, cockroaches, and ever-dreaded termites. Termites alone are a massive financial risk, with the average cost of termite damage repairs reaching approximately $3,000.

Fortunately, a professional pest inspection is designed to identify visible signs of an infestation. Unlike a home inspection, which evaluates the property’s overall condition, a pest inspection focuses on detecting any signs of insects or rodents so you can respond accordingly.

Read on to learn more about pest inspections, how they work, and when they’re required to secure your mortgage.

What is a pest inspection?

A pest inspection is a specialized home examination designed to find insects or rodents that could cause structural damage or pose health risks. While a general inspector looks at the "big picture," a pest professional focuses on the details that often go unseen. For example, termites can silently eat away at wood and weaken a home’s structure, while rats can damage wiring.

Because the stakes are so high, many buyers schedule a termite inspection for home purchase around the same time they arrange their general home inspection or appraisal. In some cases, a home inspector or appraiser might even recommend a professional pest look-over if they notice subtle red flags, like wood shavings or droppings. However, you don't have to wait for a recommendation you can request a pest inspection whenever you suspect a problem or simply want peace of mind before closing.

Who can perform a pest inspection?

Pest inspections are typically performed by licensed pest control companies that also offer professional extermination services. While you might be tempted to look for visible issues yourself, a professional inspection is far more thorough. Pros know exactly where to look for hidden signs of termite damage or nesting that the untrained eye might miss.

It’s also important to note that if your mortgage lender requires an inspection, a licensed professional must perform it to ensure the property meets safety standards. Relying on an expert not only fulfills loan requirements but also gives you a clearer picture of any necessary termite remediation or repairs before you commit to the purchase.

When is a pest inspection required?

A pest inspection may be required for certain mortgage programs. For example, VA loans require a pest inspection in more than 30 states and territories and in some counties across an additional eight states. In the remaining states, you need only one if the VA appraisal report notes specific issues. The same goes for VA Streamline refinances (VA IRRRLs).¹ You need a pest inspection only if an appraiser identifies signs of pest activity. Similarly, FHA loans require a pest inspection if there is evidence of possible pest infestation.²

When is a termite inspection required?

A termite qualifies as a pest and therefore falls under the scope of a pest inspection. In other words, a termite inspection is required for all VA and FHA loans that meet the above conditions. Depending on the loan type and your contract, you may be able to negotiate for the seller to cover the cost of the inspection.

What does a pest inspection entail?

By identifying active infestations or signs of termite damage, a professional helps you avoid the high cost of pest damage down the road. A pest inspection often involves the following steps:

Search for infestations

First, the inspector looks for signs of pests. In addition to looking for insects and rodents, an inspector will try to find any evidence they’ve left behind. This may include wood damage, insect droppings, and bite marks. Depending on the region, inspectors are on the hunt for:

• Subterranean and above-ground termites
• Bedbugs
• Cockroaches
• Bees and other stinging insects
• Carpenter ants
• Various kinds of rodents
• Spiders
• Snakes
• Scorpions
• Moths
• Wood-destroying insects

Evaluate any structural damage

Next, the inspector evaluates any structural damage caused by pests. Common areas of attack include floorboards, baseboards, walls, and siding. If any structural damage is detected, it must be repaired after the pests are removed to ensure the home remains safe and secure.

Keep in mind that the cost of structural repairs can vary significantly depending on the severity of the infestation. If you're planning for these repairs, it’s helpful to understand home renovation costs and how they might impact your budget. Identifying these issues early allows you to address necessary remediation before finalizing your purchase.

Provide a detailed pest report

Once the inspection is complete, the inspector issues a pest report to the appraiser. While the format varies by state, the report typically outlines what pests were found, where they were discovered, the damage caused, and recommended treatments. Of course, the discovery of pests may hurt the home appraisal, impacting buying and lending decisions.

Make recommendations for treatment

Any identified pest Issues typically need to be addressed to meet lender requirements before the loan can close. This may require a single exterminator visit or a longer treatment plan if the issue is severe enough. Either way, your inspector may recommend a follow-up inspection to ensure the issue has been fully resolved.

How long does a pest inspection take?

Most pest inspections take 30 minutes to an hour to complete. However, they may take longer if the home is large or includes hard-to-access areas like crawl spaces and attics. Keep in mind that once the inspection is complete, a report must be sent to your mortgage lender, which can add several days of processing time. Furthermore, any needed repairs or treatment will add additional time, so schedule them quickly to speed up the process. Finally, once the repairs and treatment are complete, a follow-up inspection usually confirms that the damage and pests have been eliminated.”

Should you get a home pest inspection?

If you’re using a VA or FHA loan, a termite inspection for home purchase is often a necessary step in the closing process. As previously noted, many states require these inspections for VA loans, and FHA appraisers will mandate one if they see signs of activity. Without a cleared report, your closing could be delayed.

But mortgage requirements aren’t the only reason to consider professional pest control services. A pest inspection provides essential peace of mind, helping you avoid the high cost of termite damage and ensuring your new home is safe and structurally sound before you sign the final papers.

FAQ

Here are answers to frequently asked questions regarding pest inspections:

Are pest inspections required?

Pest inspections are required in certain cases, such as when applying for a VA loan in many states or if a home inspection reveals pest problems.

Which pests can cause the most damage to a home?

Termites, carpenter ants, and rodents are the primary pests responsible for significant property damage. Identifying these early through a pest inspection is the best way to avoid a high cost of pest damage.

• Termites: These pests cause extensive termite damage by eating through structural wood, hollowing out support beams, and ruining floors from the inside out.
• Carpenter ants: These ants weaken a home’s framework by tunneling through wood to create nesting galleries, often in areas with moisture.
• Rodents: Rats and mice cause pets home damage by gnawing through electrical wiring, creating fire hazards, and destroying insulation.

The bottom line: Pest inspections are worth it

While a pest inspection might feel like just another step in the home buying process, it is a vital safeguard for your investment. By identifying termite damage or potential infestations early, you can avoid the high cost of pest damage and ensure your new home is structurally sound. Whether your loan program requires it or you simply want peace of mind, professional pest control services provide a clear picture of a property's health. Taking this proactive step allows you to handle remediation before it becomes your financial burden.

Ready to move forward with your home purchase? Start your mortgage application online with Rocket Mortgage today.

¹ The VA Streamline program may have stricter requirements in some states. In order to qualify for the VA Streamline program, you must have a VA loan. The VA Streamline is only available on primary residences. Cash-out transactions are not allowed. In order to qualify for a VA Streamline, a 0.5% minimum reduction in interest rate on the previous fixed-rate loan must occur if the new loan will be a fixed rate or a 2% minimum reduction in interest rate on previous adjustable rate mortgage loan must occur; a minimum of 6 months of consecutive mortgage payments must be paid on the current loan at the time of application. Some states may require an appraisal. Additional restrictions/conditions may apply.

² Rocket Mortgage is not acting on behalf of FHA or HUD.

Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

Rocket Mortgage is a trademark of Rocket Mortgage, LLC or its affiliates.