Are you currently in the market of selling your home or buying a new one? Did you need to obtain an appraisal from a lender before they were willing to release the funds for your loan?
Did you know that appraisals have an expiration date? If you are looking for more information about home appraisals and their expiration dates, then you came to the right place. In this brief article, we will go over how long is a home appraisal good for and who you can contact for more information.
What is a home appraisal?
A home appraisal is the valuation of your property. A licensed professional will need to come to take a look at your property to determine its value. Most people obtain these appraisals for insurance and taxation reasons, while others use them to determine the selling price for a house.
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Why do you need an appraisal?
If you are looking to sell your home, you will most likely need to appraise the property. This appraisal will show you how much your house is worth based on the current market conditions and other factors. If someone is willing to pay cash for your home, there may not be a need for an appraisal.
Reasons someone may need an appraisal:
- IRS estate evaluation
- Divorce litigations
- Diminished value
- Mortgage loans
Appraisals are usually required when someone is trying to purchase a home with a loan. Lenders want these appraisals to make sure that the house is worth the amount of money they lend. They want to ensure that they only pay what the home is worth.
Appraisals, in this case, protect the interest of the bank. If the homebuyer defaults on their loan, the bank knows that they have enough financial interest to take back the home and sell it.
How long is a home appraisal good for?
As mentioned earlier, people ask for appraisals for several different reasons. Home appraisal expiration dates depend solely on the basis of the appraisal. For example, some private appraisers will write that the appraisal is only valid for a day.
This can be because the market changes constantly, and there is no guarantee that the property’s value will stay the same. Appraisals for mortgage loans all have their own set of days that they are valid.
The length of time a conventional loan’s appraisal window stays open depends on the type of property in question. For example, if someone is interested in buying a newly built house, their appraisal may last up to a year. Other home appraisals last for about four months.
USDA loans, which are loans backed by the United States Department of Agriculture, are mainly used for homes located in rural areas. The appraisal on a home for a USDA loan lasts four months. There is also a 30 day grace period.
VA loans, also known as Veteran Affair loans, are mortgage loans tailored for qualified veterans. Any active services members and their spouses are also able to obtain these loans.
VA loan appraisals are valid for up to six months. If you do not close on your VA loan within that timeframe, you will need a new appraisal.
Fannie Mae is a corporation that makes it easier for low to moderate-income borrowers to own homes. Fannie Mae does not directly provide the loans; they just back the loan.
Appraisals for Fannie Mae backed loans are typically valid for about a year. If you do not close after four months, you will need an appraisal update.
Appraisals for Federal Housing Administration loans are valid for four months. If you decide to go through with the loan but surpass the 120 days, you will need a new appraisal.
There are case numbers assigned to each FHA loan appraisal. If the case number changes, you may need a new appraisal.
Home appraisal alternatives
As you can see, if you are in the market for selling your home, the buying process on the homebuyer’s side can drag on. Depending on who your potential buyer uses to purchase your home, you may find yourself waiting for someone to make an offer.
It can become tedious when you have several different potential buyers who want to come to inspect the house only to need an updated appraisal or to complete additional paperwork. If you are looking for a faster way to sell your home, you may want to consider partnering with a reputable iBuyer.
What is an iBuyer?
An iBuyer is a company that has a considerable amount of financial resources to make you an all-cash offer on your property. They use big data to price your home correctly.
Real estate agents typically depend on the data readily available and the house inspection to determine the value of your home. The traditional way of selling a home can take a long time, whereas an iBuyer can make you an offer in less than 24 hours.
Selling to an iBuyer
Selling your home to an iBuyer takes four simple steps: request an offer, review and accept the offer, schedule an inspection, and close out the sale. iBuyers believe that the home buying process should not take months but only days. This helps you move on to your next adventure without having to worry about waiting on your potential buyer’s lender to release the loan.
Request an offer
The first step to selling your home to an iBuyer is requesting an offer. You will need to input your personal contact information and information on your property. If the property matches their criteria, they will reach out to you within 24 hours with an all-cash offer. Some iBuyers take between 24 to 48 hours to give you an offer, depending on who you decide to partner with.
Review and accept
Once you receive the offer from the iBuyer, you will have about five days to make your final decision. The request will break down the value of your home.
It will also break down the closing costs, transaction fees, and how much you will receive. If you are happy with what you see on the breakdown report, you can move forward and accept the loan.
Schedule your home inspection
The iBuyer will need to send out a representative to inspect the home. The purpose of this assessment is to ensure that the information you input about the house matches the property’s actual physical condition.
This inspection also allows the iBuyer to see if there are any repairs they need to take care of. If there are any repairs needed, they will reach out to you immediately.
You will not need to pay for the repairs out of your own pocket. You don’t even need to wait until the repairs are complete before you can move out. The iBuyer will deduct the repair costs from your net proceeds, and they will handle the repairs when you move out.
Choose your closing date
With an iBuyer, you get to control your closing date. Once you resolve the repair situation, if any repairs are needed, you get to choose your closing date.
Depending on which iBuyer you decide to partner with, you will have between two weeks to two months to move out of your home. After the close of your sale, you will receive a payment within a matter of days, not months.
Should I sell to an iBuyer?
If you want a faster way to sell your home, an iBuyer is your best option. They use cutting-edge technology proven to give you an accurate all-cash offer for your home.
Once you sell your house to an iBuyer, they will handle all the necessary repairs and even stage your home for potential buyers. You no longer need to worry about showing your home and waiting for appraisals from homebuyers. Your iBuyer will take care of all the marketing associated with selling your property.
Skip the home appraisal process
“How long is a home appraisal good for?” is a common question that many people ask themselves throughout the home buying process. If you are looking for a way to skip that appraisal process, you can choose to partner with an iBuyer company instead to take care of selling your home.
Your iBuyer will give you an excellent all-cash offer and will take care of the rest. If you are ready to sell your home and move on to your next adventure, submit your address to get a no-obligation cash offer.