Appraisal Recertification And Updates
An appraisal does not last forever, and repairs need to be confirmed. Here is how an appraisal update and a completion report keep your value current through closing.
When an appraisal is recertified
Keeping the value current
- When the appraisal has aged beyond the allowed window
- When required repairs need to be confirmed as complete
- When new construction is finished and inspected
- When a holdback is waiting on final work
- When the original value needs to be brought current
- When photos or a site visit can document the work
An appraisal can be updated
The value is brought current
Completion reports confirm work
A declined value means a new one
The original appraiser is preferred
Photos document the work
What An Appraisal Update Is
Bringing an appraisal current before closing
An appraisal reflects a home’s value on a specific date. If enough time passes before you close, the appraisal can age out, and a lender needs to confirm the value is still good. That confirmation is an appraisal update, reported on Form 1004D.
The original appraiser usually completes the update, though a substitute can be used. If the appraiser confirms the value has not declined, the loan can move forward on the original number. If the value has declined, a new appraisal is required instead.
The same Form 1004D also serves as a completion report. When repairs or new construction had to be finished, the appraiser confirms the work is done, often with photos or a site visit, so a holdback can be released and the loan can close.
Why an appraisal gets recertified
An update keeps the value honest and confirms the home is finished. Here is how it works.
Appraisals Have A Shelf Life
A value is tied to a date. When a loan takes long enough that the appraisal ages beyond the allowed window, a lender needs an update to confirm the number is still good before closing.
The Value Is Brought Current
An appraisal update, on Form 1004D, refreshes the value. If the appraiser confirms it has not declined, the loan proceeds on the original figure without starting the appraisal over.
A Decline Means A New One
If the appraiser reports that the value has declined, an update is not enough. A new appraisal is required so the loan is based on an accurate, current value.
Completion Reports Confirm Work
When repairs or construction had to be finished, the same form confirms the work is complete. This is common with renovation loans, new construction, and escrow holdbacks.
Photos And A Visit Document It
The appraiser confirms completed work through photos or a site visit, sometimes done virtually. That record lets the lender release a holdback and move to closing.
The Original Appraiser Is Preferred
The appraiser who did the original report usually completes the update, since they know the property. When they are not available, a substitute appraiser can step in.
Hear From Homeowners Like You
Frequently Asked Questions
Common questions about appraisal updates and recertification.
An appraisal reflects value on a specific date and stays valid for a set window. If it ages beyond that before you close, an appraisal update is needed.
It is the appraisal update and completion report. It is used to bring an appraisal current or to confirm that required work on the home is finished.
If the appraiser reports the value has declined, an update is not enough and a new appraisal is required for the loan.
Usually the appraiser who did the original report, since they know the property. A substitute appraiser can be used when the original is unavailable.
It confirms that required repairs or new construction are finished, often with photos or a site visit, so a holdback can be released and the loan can close.
Sometimes. A completion or update can involve a site visit, and in some cases the inspection can be done virtually.
When money is held back for unfinished work, the lender releases it only after the completion report confirms the work is done.
Find out what you qualify for
Worried your appraisal might age out before closing? We keep an eye on the timeline so an update never catches you by surprise.
Get Pre-QualifiedAppraisal validity, update, and completion requirements are subject to program eligibility, appraisal rules, and the condition of the property. Whether an update or a new appraisal is needed depends on timing and the reported value. This page is informational and is not a commitment to lend. Not all applicants will qualify.