Pest Inspection: Is It A Requirement To Get A Mortgage?

Whether you’ve just moved into a home or have been in there for a while, you never want it to become a welcoming habitat for critters. While a home inspection evaluates a home’s general systems and structure, a pest inspection is a specialized service. It’s always a good idea, and depending on the type of mortgage you’re getting, it may even be required.

What Is A Pest Inspection?

A pest inspection includes a search for bugs and other creatures that can cause damage to a property’s structure, a health hazard or both. Termites, which get their nutrients from the wood in your house, are a common cause of structural damage, as well as other bugs and rodents.

A pest inspection usually happens around the same time as a home inspection or appraisal. In fact, an appraiser observing signs of a potential pest problem might trigger a pest inspection. However, homeowners can order pest inspections whenever they’re worried they might have an issue.

Who Can Perform A Pest Inspection?

Typically, companies that handle exterminations provide pest inspection and mitigation services. If you suspect a problem and can see where it’s coming from, you may be able to perform a DIY inspection and mitigation measures. However, inspections and exterminations are often best left to the pros. If your mortgage program requires a pest inspection, you’ll need to hire a professional.

When Is A Pest Inspection Required?

With limited exceptions in certain states and counties, you usually need a pest inspection with a Department of Veterans Affairs (VA) loan. One notable exception to the pest inspection requirement is the VA Streamline refinance (VA IRRRL). This refinancing option typically doesn’t require an inspection unless an appraiser spots a problem.

When Is A Termite Inspection Required?

You’ll likely need a professional termite inspection if you apply for a VA loan or a home inspection shows signs of a termite infestation, such as wood damage. In some cases, like VA loans, the seller may be required to cover the cost of the termite inspection.

What Does A Pest Inspection Entail?

Here are some steps an inspector may take during a pest inspection:

Search For Infestations

A trained profesional will inspect the interior and exterior of your home for unwanted critters and potential problems that may become a hazard. Depending on the region you live in, the pests may include:

• 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

Evidence of these critters can include everything from damaged wood to small collections of insect droppings or bite marks on furniture.

Evaluate Any Structural Damage

Insects and other pests usually get into your house by exploiting or causing structural damage. The inspector will look for evidence of damaged floorboards, baseboards, walls, siding and more. The structural damage must be repaired after rooting out the pests from their hiding place.

Provide A Detailed Pest Report

Once the inspector is done, they’ll issue a pest inspection report to the appraiser.

Although states use different forms that focus on the pests common to their climate, pest reports generally share some common elements. Each inspection report will include a brief overview of any pests discovered during the inspection. The report will specify where they were discovered, detail any damage and recommend necessary treatments.

Make Recommendations For Treatment And Damage Repair

Any problems identified by an inspector or appraiser usually need to be treated, and any damage caused by an infestation must be repaired to an inspector’s satisfaction before you can move forward with your home loan.

An effective treatment may only require one visit from an exterminator. An inspector will likely recommend a lengthier treatment plan for extensive structural damage. No matter how involved treatment is, an inspector may recommend reinspecting the home to verify the problem has been taken care of.

How Long Does A Pest Inspection Take?

Most pest inspections usually take 30 minutes to an hour to complete. An inspection may take longer depending on what the inspector has to look for and the size and layout of the house. For example, a crawl space or attic that is harder to access can take additional time.

The inspection report must be sent to your mortgage company, potentially adding 1 – 2 days to process. If damage repair or mitigation is required, scheduling it sooner will expedite the process. Once the repairs are complete, there is usually another inspection to confirm damage repair and the eradication of the problem.

How Much Does A Pest Inspection Cost?

According to HomeAdvisor, the average cost of a termite inspection is about $100. However, the cost can vary depending on the size of the home and what the inspector is searching for. You may earn a package deal if the company performing the pest inspection also performs your home inspection.

Who Pays For The Pest Inspection?

With most loan options, it doesn’t matter who pays for the pest inspection. VA loans previously placed the costs on the lender or seller in certain states. However, a 2022 rule removed that requirement, allowing borrowers in every state to cover the costs. The reason for the change is to give VA borrowers negotiation powers during a competitive market.

Should You Get A Home Pest Inspection?

Many states require a VA loan termite inspection. A pest inspection will be necessary if your appraiser notes signs of a pest problem. You may not qualify for the mortgage if you don’t get the pest inspection.

Even if a pest inspection isn’t required, no one wants to share their home with uninvited guests, particularly those with more than four legs. Getting an inspection is well worth it for peace of mind alone. You’ll feel confident that your new home is clean and safe.

Home Pest Inspection FAQs

Here are a few of the most commonly asked questions regarding home pest inspections.

Are pest inspections required?

There are a few situations in which a pest inspection may be required. If you are applying for a VA loan or if a home inspection shows signs of a pest infestation, a professional pest inspection will likely be required.

Who pays for a pest inspection?

In some cases, like VA loans, the seller may cover the cost of a pest inspection. Otherwise, if the buyer’s home inspector notes signs of pests they may decide to get a pest inspection before moving forward with the process.

The Bottom Line

A pest inspection can help ensure no undesirable creepy crawly has made your home their own. The inspection is relatively affordable and may be necessary to get a mortgage. An inspection can also help reassure you that the home you’re living in is safe and sanitary.

Are you looking to purchase a home of your own? Take action and start your mortgage application with Rocket Mortgage^®.