Termite Inspection

What a Lender Wants to See on a Termite Report

If you're financing a home purchase in the Denver area, your lender may require a wood-destroying insect report (often called a WDIR or WDO report) before clearing the loan to close. Knowing what they're looking for helps you avoid last-minute paperwork surprises.

The basics lenders check for

• A licensed inspector's signature. The report needs to come from a licensed pest control company, not a general home inspector's informal notes.
• A clear finding statement. Lenders want an explicit statement of whether active infestation or damage was found — not just a general "looks fine" summary.
• Treatment and clearance documentation. If activity was found and treated, the lender typically wants a clearance letter confirming the issue was resolved before they'll finalize.
• The correct report form. Some loan types (particularly government-backed loans) require the report on a specific standardized form rather than a generic write-up.

Why this matters for your timeline

A report that's missing required fields or isn't on the right form can bounce back from underwriting, costing you days you may not have before closing. Confirming with your lender or loan officer exactly which report format they need — before scheduling the inspection — saves a round trip.

What if the report finds something?

Most lenders will still close once treatment is documented and, if damage was found, once repairs are addressed or accounted for in the purchase agreement. The key is getting ahead of it: schedule early, treat quickly if needed, and get the clearance paperwork back to your lender well before your closing date.

Related reading: can a termite inspection delay your closing.