A home appraisal is crucial in buying, selling, or refinancing a home. It helps determine the fair market value of a property based on factors like location, condition, and recent sales of similar homes. But how long does an appraisal last, and when might you need a new one? Let’s break it down in detail.

How Long Is a Home Appraisal Good For?

A home appraisal is generally valid for 90 to 120 days (about 3 to 4 months). However, the duration depends on the loan type, lender policies, and market conditions.

Here’s how different loan types handle appraisal validity:

1.Conventional Loan Appraisals

  • Typically valid for 120 days (4 months).
  • Some lenders may require an updated appraisal sooner if the market changes rapidly.
  • If a loan is delayed beyond this period, the borrower may need to pay for a new appraisal.

2. FHA (Federal Housing Administration) Appraisals

  • FHA appraisals are valid for 120 days but can be extended to 240 days under certain conditions.
  • If a home sale falls through and a new FHA buyer makes an offer within the extended period, the original appraisal may still be used.

3. VA (Veterans Affairs) Appraisals

  • VA appraisals typically last 6 months (180 days).
  • However, lenders may require a new appraisal if market conditions or home values change significantly.

4. USDA (United States Department of Agriculture) Appraisals

  • Valid for 120 days (4 months), similar to conventional and FHA loans.
  • A new appraisal may be required if the loan isn’t finalized within this period.

Why Do Appraisals Expire?

Appraisals expire because the real estate market is always changing. If a home’s value fluctuates, an old appraisal may no longer reflect its true worth. Additionally, lenders want the most accurate information to protect their investments.

What Can Affect an Appraisal’s Validity?

Even if an appraisal is technically valid for several months, certain factors may make it outdated sooner:

Market Changes

Real estate markets can shift quickly. If home prices rise or fall dramatically, an appraisal conducted a few months ago may no longer be accurate. Lenders may request a new appraisal in a fast-moving market before finalizing a loan.

Property Condition

If the home undergoes significant changes after the appraisal—such as damage from a storm, major renovations, or neglect—its value may no longer match the original report. In such cases, lenders may require a re-evaluation.

Lender Policies

Each lender has its own rules regarding appraisal validity. Some may accept an appraisal for up to six months, while others may require an updated report if the loan process takes too long. It’s always best to check with your lender for their specific requirements.

Loan Type and Purpose

  • If you’re refinancing, a lender may require a new appraisal even if the old one is still valid.
  • A new appraisal might be needed if you switch from an FHA loan to a conventional loan.

How Long Does a House Appraisal Take?

The appraisal process usually takes a few days to a week, depending on several factors, such as the appraiser’s schedule, the complexity of the property, and market conditions.

Scheduling the Appraisal

  • The lender orders the appraisal after the buyer applies for a loan.
  • Depending on the appraiser’s availability, scheduling may take several days to a week.

Appraisal Inspection

  • The appraiser visits the home to assess its size, condition, layout, and features.
  • They compare it to recently sold properties (comps) in the area.
  • The inspection typically takes 30 minutes to a few hours, depending on the home’s size and complexity.

Report Preparation

  • After the visit, the appraiser analyzes the home’s details and market trends.
  • They complete a formal report, usually taking 3 to 7 days to finalize.

Submission to the Lender

  • The appraiser submits the report to the lender, who reviews it before approving the loan.
  • Negotiations may be needed if the appraisal is lower than expected, which could add time to the process.

Conclusion

A home appraisal is typically valid for 90 to 120 days, but the exact duration depends on the loan type and lender policies.  If your appraisal expires before your loan closes, you may need to pay for a new one. Always check with your lender to understand their specific appraisal requirements.

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