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Why did my bank fail my loan after my mold inspection report?

The short answer to the question is that your home has been flagged for a potential area of concern, and the loan has been suspended until corrective action has been taken. Although it may not be a concern you share or agree with, the banks are cautious that these concerns may turn into problems down the line causing you to default on your loan, prompting a bank repossession. This is the reason banks require a general home inspection to be performed before any financing is granted.

So why did my home inspector ask me to get a mold inspection and report?

Home inspectors like all people have their limitations. Their area of expertise may be broad but general. Qualified home inspectors have the ability to spot problems, and determine if further investigation is necessary. They are not masters of all trades, even though they may have knowledge and expertise in various fields. When they encounter a concern (mold in this scenario) they believe requires the opinion of an expert, they suggest an expert in that field be contracted to investigate further.

Alright, what does that entail?

A mold inspector (typically a senior staff member in the organization with years of experience, and trained in mold detection and remediation protocols) will come to your home and inspect for all signs of mold growth in the areas of concern. A report will then be generated based on what is seen, and additional testing may be suggested to identify anything suspicious that can not be determined by the naked eye.

What will be in the report?

The report should document all findings in the designated areas of concern if not the entire home when requested. Sometimes it is suggested, but not in all cases that additional lab testing, at an additional fee. be done to determine the quality of the air. This is not typically required for a basic mold inspection. It may also encompass recommended treatment protocols, procedures, and general guidelines to follow for mold remediation, in accordance with the S520. This is the standard of care for mold remediation experts.

The bank told me the home inspector report was fine, but the mold inspection was a problem. Why?

Unfortunately the mold inspection was suggested for a reason by your general home inspector or bank. As stated above, a general home inspector is looking for potential areas of concern. When these are found, they sometimes require the opinion of an expert in the field in question. This expert opinion is requested to fill in the blanks of the general home inspection report.

So can the report be adjusted to show there is nothing wrong?

No, the report provided must accurately describe any fungal growth discovered during the inspection for a host of reasons. Ethics and honesty should be at the top of the list when discussing an alteration of a report. Failure to disclose fungal growth could lead to health concerns, along with ignoring the underlying cause of the growth.

Is there a cost, and if so why?

Typically there is a cost association with providing an inspection report. The time spent during the inspection along with a detailed comprehensive scope and report all figure into the price of an inspection report.

What can be done to fix this and get my loan?

Contact your bank and ask them what they require to give you the loan. Their goal is the same as the people who provided the mold inspection. They want you to be able to obtain a loan, but they don’t want you walking into a bad situation right from the start. Your health and the health of your home should be your top concern, as it our top priority!

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