I am a first time buyer and need some advice on what to do. My wife and I found our dream home home and are set to close on it next week but we have run into a problem. We put our contract in on the house and the offer was accepted. We were given 10 days to get an inspection and appraisal done and everything went fine for the most part. The inspector found a few things that needed to be fixed so we presented it to the sellers and they fixed everything without hesitation. We submitted our loan app(FHA loan) to our broker along with all documentation after after 2 days we had our approval with a few conditions. Everything was going smooth and we started packing to move and our landlord rented the house we were living in. Well now the hard part...a week went by and we haven't heard from the underwriter for the full approval. Our landlord had the new tenant set to move in and we still haven't been clear to move in our new house. The sellers were nice enough to go ahead and let us move in and pay a rent until our loan closes. So we moved all our stuff into our soon to be new house. While unpacking we found what looked like rat poop around the base boards and in the cabinets so we called an exterminator. The exterminator came out and gave us news that we didn't have rats or mice but we do have TERMITES! I wasn't aware that we needed to have a termite inspection done. The house is 30 years old so I never thought that this house didn't have a bond or some sort of termite treatment done. My agent never told me that was needed and living in the South I assumed that everyone at least did some sort of termite treatment. The termites have eaten away a main beam under the house and through the walls in the living room. We had a contractor come out to give us an estimate on how much it would cost to do repairs on the damage. Turns out to be $5k just for the beam. So now we are a couple days out from closing living in a house with $5k in repairs needed(plus $1k for the termite treatment) Problem is we don't have that money...all our money is going to the down payment. We are at a loss on what to do. Our agent should have told us to get a termite inspection and I am very upset she didn't. In the sellers disclosures they said they didn't have any termite damage also. We have asked the sellers to pay for the repairs but since we are outside our 10 day window that they are not required to pay right? So my question is, do we walk away from the house and lose our $1k in earnest money? There is no telling how much more we are going to have to pay for the other termite damage around the house. I would think that the seller would go ahead and pay for it because if we walked away and someone else wanted to buy they would have to disclose the damage and most likely pay for it anyway. Any advice on what to do? It would be greatly appreciated because we truly don't know what to do. Thanks in advance!