Any home you purchase or sell is going to need an appraisal to determine how much it is worth. But what happens if your loan takes longer to process than you expect? When several months go by and the market changes, it’s important to ask the question – how long is a home appraisal good for?
Notice of Value Expiration for Different Types of Homes
Depending on the type of home you have, your home appraisal may stay good for longer (or shorter). For example, appraisals for homes that are under construction usually last for about 12 months. For other homes, however, an appraisal lasts 6 months unless real estate market conditions suddenly fluctuate. Because no one can accurately predict when market conditions with suddenly fluctuate, this can cause a bit of stress for the borrower. However, home type isn’t the only thing that determines the life of an appraisal.
Life of an Appraisal
Any appraisal will expire at the close of a loan, meaning once you close on your home, that’s it. The appraisal cannot be reused. When the old appraisal expires, a new one will be required for any further action. The exception to this rule would be for VA IRRRLs, which will take the information from the original appraisal (even though it’s expired) and use it for the new loan. The refinance loan is designed to cut down on paperwork, making the refinance process quick for the veteran borrower.
Many borrowers will ask, “how long does a VA appraisal stay with the property?” Before 2012, if a potential buyer decided not to buy a home, a second buyer could use their appraisal for the same home. However, this is not possible anymore under new VA regulations. When another buyer is interested in a house, they must provide an additional appraisal not ordered by previous potential buyers.
VA Home Loan Appraisal Requirements
Every VA mortgage loan appraisal must meet these three requirements:
- Follow the Uniform Standards of Professional Appraisal Practice
- Conducted efficiently, in a timely manner
- Meet livability, sustainability, and habitability requirements
The last requirement of the three poses the most concern for buyers and sellers alike. In order for an appraisal to pass (if it doesn’t pass, the lender will not agree to the loan), the home must meet all of the MPRs, or minimum property requirements. It would be difficult to list every MPR here, but just a few are adequate heating, electric, and lighting; no problems with the foundation; adequate living, bathing, and cooking space; roof in good condition; and adequate drainage. On the whole, the appraisal is meant to ensure your home is structurally sound, safe, and sanitary.
VA Appraisal Timeline: How Long Do VA Appraisals Take?
The VA appraisal process will take about 10 days to complete. But this is not a hard rule as appraisers often run into bumps along the way that will delay the appraisal process. Plus, the timeline isn’t as simple as calling an appraiser and giving them a tour of the house within the hour. Here’s a general timeline of a VA appraisal:
- The appraisal is ordered by the lender.
- The next available appraiser takes up the request.
- The real-estate agent grants access of the property to the appraiser.
- The appraiser undertakes additional inspections if the first was inadequate.
- The Staff Appraisal Reviewer (SAR) approves or denies the report.
As you might be able to see, this process naturally presents potential kinks. For example, what if several requests have gone out, so an appraiser is not immediately available? Or what if the real-estate agent is unable to grant property access to the appraiser for a few days? Because of these possible delays, it’s vital that you stay connected with your lender and appraiser at this stage to ensure all concerns are addressed.
VA Home Appraisal
By the time you start asking other lenders “how long does a VA appraisal take,” we’ve already started the process. At Low VA Rates, we understand how important it is to have quick, quality service for your home loan needs. We work hard to ensure you come out of the loan experience saving money and feeling satisfied. If you have any other questions about VA appraisals, give us a call at 855-223-0705. We’d love to chat!