Mortgage Loans

[lwestling]

Our pest inspection was just emailed. It states there are "visible exit holes by garage window, presumably by carpenter ants. No activity is noted." He also checked off the box that says no treatment is recommended but monitor the area. Is this a kiss of death? Will this get the house denied?
We were aware of the area of damage at the time of inspection. The area is very small and next to the (attached) garage window. There was no other evidence of any type of wood destroying insect.
It's always something, isn't it? Sigh.

[JM-AM]

This all depends on the lender. 

[seigex]

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lwestling wrote:
Our pest inspection was just emailed. It states there are "visible exit holes by garage window, presumably by carpenter ants. No activity is noted." He also checked off the box that says no treatment is recommended but monitor the area. Is this a kiss of death? Will this get the house denied?
We were aware of the area of damage at the time of inspection. The area is very small and next to the (attached) garage window. There was no other evidence of any type of wood destroying insect.
It's always something, isn't it? Sigh.

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depends on what you mean by pest inpsection! The VA only requires a clear termite (section 1 & 2) and a signed off appraisal.

The 'inspection' is not required for a clear VA and  is done for the benefit of the buyer, and helps you with negotiating a better price.

If it was the termite inspector, if he listed it under section 2, those are just things are recommended to be taken care of but not requierd, but as long as the termite guy signs off then you are good to go, if it falls under section 1 termite, those are things that need to be immediately taken care of before he signs off.

If it's appraisal, it all depends on if he signed off the appraisal or not. If it's just the inspection, that will NOT hold up the loan.

Good luck!

[lwestling]

Thank you for the input and info! I spoke with my loan officer's assistant (well, not sure that is her title, she is our contact person from here on out) and she was very reassuring. She said that as long as the inspector said that there is no treatment reccomended, that is good for them and worst case scenario, we will have to sign a waiver that if structural damage is found later on down the road because of what was found they are not held liable.
She said everything looks great and if things go according to plan, we could our conditions from underwriting next Monday afternoon (or at the latest Wednesday, because of New Year's) we could get cleared to close as soon as next Thursday or Friday!!

[lwestling]

Oh, and we did get our appraisal back today as well, it was $2k above what we are paying.