Termite Inspection for Home Purchase

Mortgage and Lending with D A Griffin Financial.LLC NMLS 6380

Termite Inspection for Home Purchase


When you buy a home in Northern Kentucky the inspection for a home inspection and wood destroying insects boxes are routinely checked. We live in an area where termites are fairly common so most home buyers will want the termite inspection done. I must disclose a fee on my loan estimate for certain services selected on a purchase contract and I must provide offsetting paid invoices for those fees. 

I'm running into more and more home buyers who utilize "one stop shopping" when they engage someone for the home inspection AND allow that company to bring in a termite inspector vs hiring their own termite inspection. I am going on record to discourage that choice for a few reasons.


1) I'm seeing the whole house inspection company charge a marked up fee to the home buyer resulting in difficulty in documenting the actual termite inspection fee. The home inspector may charge the home buyer $60.00 but only pay the termite inspection company $50.00. The termite inspection company will not document the amount paid by the home buyer because they were paid by the home inspection company not directly by the home buyer. The home inspection company will not document the termite inspection because they only paid $50.00 for it, but collected $60 from the home buyer.


2) When a termite inspection is chosen on the contract I must disclose a fee for that inspection when I put together a loan estimate to the home buyer. I estimate the fee on the initial disclosure and when the paid invoice is provided I update the file for the actual cost that was paid outside of closing. To do so I need the paid invoice for the termite inspection ONLY. When utilizing one stop shopping it can take a week or more for either the home inspection company or termite inspection company to step up and provide the receipt. This adds an element of frustration that is just not necessary.


Best practice when buying a home is to contract for your own termite inspection to avoid any delay in documenting all the funds you have paid outside of closing.  It will save you aggravation when you get close to closing. If you use one stop shopping then be aware you must get the paid receipt from one of the two parties who provided the service.


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Dora Griffin

NMLS 6380
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