"What Happens If an Inspection Finds Termites or Wood Damage Before Closing?"

The inspection mentions termite evidence or damaged wood, and now you have a different question from the one you started with. Before deciding whether to continue with the purchase, you'll want to understand what was found and who needs to evaluate it.

A termite or wood-damage finding needs a qualified pest evaluation, a separate review of any damage or repairs, and confirmation of your contract and loan requirements before you rely on a closing plan.

I'm Jeff Moran, a mortgage broker in Bluffton, South Carolina, originating since 1996, licensed in fifteen states, NMLS #483943, through C2 Financial Corporation.

I'd start with the actual report and its recommendations. Please keep the complete document, including comments and any areas the inspector couldn't evaluate. A verbal description that the home has "a termite issue" doesn't give us enough information to work through the next steps.

Does termite treatment also resolve the wood damage?

I'd keep those as separate questions. Treatment addresses the pest problem. The condition of damaged wood still needs evaluation by the appropriate professional.

In South Carolina, the Official Wood Infestation Report (Form CL-100), regulated through Clemson's Department of Pesticide Regulation, reports visible infestation and damage caused by insects and decay. It's a pest report. It isn't a contractor's or engineer's evaluation of the wood's condition, and a report of what was visible on the inspection day isn't a promise about the future.

That is a South Carolina report example. It doesn't establish that every purchase in every state requires that form. The Georgia termite-report article covers Georgia's different document and rules.

Please ask the pest professional to explain whether the evidence indicates active or previous infestation, what treatment is recommended and what the report says about damage. I'd then want the damage question addressed by the professional qualified to evaluate it, rather than assume a treatment receipt answers it.

Confirm the loan requirement for the actual property

HUD's FHA property criteria, also saved in the agency guideline corpus, require an existing property to be free of wood-destroying insects and organisms. When an FHA appraisal is subject to a qualified pest inspection, the lender must get that inspection and evidence of required treatment. That is the FHA rule described here, rather than a requirement assigned to every loan.

VA's official local requirements identify where wood-destroying-insect information is required and list South Carolina statewide. The page also addresses states where an appraisal finding can trigger the inspection. Please let me confirm the applicable requirement for your property and file.

The appraiser and inspector repair guide explains the different roles. A pest report, a repair evaluation and the lender's review each answer a question; I'd want the necessary answers together before treating the issue as resolved.

Put the follow-up beside your contract dates

I'd use a short list to organize the conversation:

• Which professional is evaluating the pest evidence, and when will the report be available?
• Does the finding need treatment, damage evaluation or both?
• What written scope and estimate are available for proposed work?
• What does your agent or attorney say about the inspection deadline and required notices?
• What documentation does the lender need before the financing can move forward?

The contract-to-closing timeline helps place that work beside the other tasks. The financing contingency and earnest money guide covers separate contract questions. Neither a pest finding nor a lender conversation establishes your cancellation or deposit rights by itself.

An invented follow-up example

This example is invented to illustrate the review.

The pest professional recommends treatment and identifies damaged wood. You arrange the recommended damage evaluation while your agent confirms the applicable contract dates. I review the proposed work and documentation needed for your loan.

You now have separate questions assigned to the right professionals. I'd still want confirmation of the findings and required work before relying on a closing date or assuming that treatment alone finished the job.

Common questions

Does a termite finding automatically end the purchase?

The finding alone doesn't answer that. Please review the pest report, any needed damage evaluation, financing requirements and your contract options with the professionals responsible for each.

Is a treatment receipt the same as confirmation that damaged wood is sound?

I'd ask for a separate damage evaluation where the pest report recommends one, by a qualified contractor or engineer. Pest treatment and structural evaluation have different purposes.

Does every mortgage require the same termite report?

No universal requirement is established here. FHA's property criteria and VA's location-based requirements are specific examples. I'll confirm what applies to your loan and property rather than substitute another state's form or rule.

What if the report also mentions moisture?

Please ask what additional evaluation is recommended and whether the cause needs attention alongside treatment or repairs. The moisture and pest follow-up guide helps organize those questions.

Please bring me the report and proposed work early enough that we can review the financing questions while you're discussing the property and contract with your inspector and agent.

Estimates and educational information are not a loan approval or commitment to lend.