Will my Georgetown lender let the sale close without a wood-destroying insect inspection?

Who Actually Requires It

Texas does not have a standing law that forces every home sale to include a termite inspection. What drives it in practice is the lender and the loan type. FHA and VA loans in and around Georgetown routinely require a wood-destroying insect report before closing, and conventional lenders often ask for one too if the appraiser flags visible damage or conducive conditions. Cash sales and some conventional loans can close without one, but that is the exception, not the rule, once real money and a mortgage are involved.

The other driver is the contract itself. Texas real estate contracts commonly name a termite inspection as a buyer's option or a seller's disclosure item, and either side's agent may push for one simply to avoid a dispute after closing. On the Balcones Escarpment side of Georgetown, where older slab foundations near Old Town sit closer to soil moisture and tree roots, agents tend to ask for the report as routine practice rather than wait for a lender to require it.

The Report, Who Pays, and Who Signs It

The document that satisfies a Georgetown lender or contract is the Texas Official Wood Destroying Insect Report, sometimes called the SPCS/T-5 form, prescribed by the Texas Department of Agriculture. It can only be performed and signed by someone holding a technician or certified applicator license in the termite category, one of the licensed pros this site can connect a homeowner with. The report lists the property, the inspector's license number, what areas were and were not accessible, any visible evidence of active or past infestation and damage, and conducive conditions like excess moisture, wood-to-soil contact, or debris against the foundation.

Who pays for it is a negotiation, not a rule. In most Georgetown contracts the buyer orders and pays for the inspection as part of their due diligence, since it is being done for their lender's benefit. Sellers sometimes pay for one up front, particularly on older homes near Serenada or Georgetown Village, to clear the question before a buyer's option period starts and avoid a repair negotiation later. Either way, the finding on the report becomes part of the file the lender reviews before clearing the loan for closing.

How Long the Report Holds Up

A clearance letter or clean report is generally treated as good for about 90 days for lending purposes, though individual lenders can set a shorter window. That matters in a slower Georgetown closing, where a report ordered early in the process for a home near Teravista or Wolf Ranch can expire before the loan actually funds, forcing a second inspection right before closing. If a first report turns up active termites or damage, most lenders will not clear the loan until treatment happens and a follow-up report or clearance letter confirms it.

Because the report is tied to a point in time, an inspection done too far ahead of a closing date is often wasted money. Sellers on the Blackland Prairie side of town, where clay soils hold moisture against a foundation longer after rain off the San Gabriel River, sometimes see a report flag conducive conditions rather than active termites, which can still stall closing until moisture or wood contact issues are corrected. Timing the inspection close to the actual closing date, not the day the house is listed, avoids most of that back-and-forth.