VA Loan Reader Questions: Who Pays For Termite Inspections?
A reader asks, “Where can I find information regarding who pays for a termite inspection and a termite letter for the state of Georgia? Does the buyer or the seller pay for the termite inspection? Thank you!”
The short answer, according to the Cleveland VA Regional Loan Center, is that the borrower can never pay for a termite/pest inspection.
In general, anytime a potential VA borrower needs answers to questions like this — especially where state-specific information is concerned — you can always turn to the VA Regional Loan Center with jurisdiction over your area. You can find yours by looking up your state.
The reader question about termite inspections is simple enough to answer — the Department of Veterans Affairs has included pest inspections in the list of fees the borrower is not permitted to be charged if the Lender’s Flat Fee is charged to the borrower.
Here’s a list of fees that, according to the VA Cleveland Regional Loan Center Official Site, may not be charged to the borrower if that Lender’s Flat Fee has been charged:
• Lender’s appraisal – the veteran can only be charged for 1 appraisal unless VA deemed a second appraisal mandatory
• Lender’s inspection – if it is not required on the appraisal/NOV, it can not be charged to the veteran
• Settlement fee, escrow fee, closing fee
• Document preparation fee
• Underwriting fee
• Processing fee
• Application fee – a veteran can be charged up front the cost of the appraisal and credit report to ensure the loan officer is not stuck with those fees if the veteran walks away from the deal.
• Pest inspection fee
• Attorney fees if for something other than title work
• Assignment fee
• Copying fee
• E-mail fee
• Fax fee
• Postage fees if not a cash-out refinance or IRRRL
• Amortization schedule
• Notary fee
• Commitment fee
• Trustee fee
• Truth in lending fee
• Mortgage broker fee
This list does NOT cover all items that may not be allowed when the Lender’s Flat Fee has been charged. Discuss your specific situation with the VA Regional Loan Center with jurisdiction over your state for further assistance.
IMPORTANT NOTE: The Cleveland VA Regional Loan Center document also includes a list of fees a borrower is not allowed to pay regardless of whether the Lender’s Flat Fee is charged or not — that list includes “termite/pest inspections.”