Thursday, November 6, 2008

How Long Can an Appraisal Be Used?

Q: How long can an appraisal be used before a lender will require a new appraisal?

A: The general guideline is 6 months, although an underwriter is allowed to ask for an update before 6 months if they think the property value might have changed. This is a common requirement in an area that has been involved in a natural disaster (flooding, hurricane, etc.). The update to the appraisal is not a full appraisal, but it does include a new exterior photo and the appraiser must use current market data to determine if the property has declined in value since the date of the original appraisal.

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