Are you currently in the market to buy or sell a house? Then listen up because this news could affect you. According to this recent article from The Washington Post, lenders are cracking down on homes with termite infestation.
If you’re buying a home and taking out a mortgage to do so, there’s a good chance the lender will require that you have a termite inspection (also known as a “wood-destroying inspection” or WDI) performed before the sale is finalized. Unfortunately, homeowner’s insurance doesn’t cover damages made by wood-destroying insects. Mortgage lenders need to protect their investment and since termites are responsible for more billions of dollars in property damages each year, it makes sense that they would want to ensure the property is free of termites before loaning money.
Rusty Markland, from PestNow, is quoted as saying, “There are only two kinds of homes — those that have termites and those that will get termites. Lenders have gotten tighter in the last few years,” Markland added, “Now lenders are requiring that any reported damages be thoroughly inspected by a licensed contractor.” Apparently lenders won’t fund the loan until they’ve received this statement and, if there was any apparent structural damage, they also need proof that it has been repaired.
Usually the inspection for wood-destroying insects is done at the buyer’s expense. If any treatment for termites or repairs to termite damage need to be done, then it is usually at the seller’s expense. Lenders require that the treatment be completed by a licensed pest control company and that all repairs be made by a licensed contractor.
Keep in mind that during home inspections, inspectors cannot see behind walls or move furniture and personal items to have a better look at certain areas of a house. A clear inspection is not a guarantee that there are no termites present or that there isn’t termite damage. It’s always better to be safe then sorry when it comes to termites, so call the termite experts at Arrow Exterminators. We have free inspections and we use only the best, The Sentricon® System, to treat and prevent termite infestations.
Mortgage Lenders Getting Tough on Termites in Oklahoma
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