When must an appraisal be re-certified?

An appraisal must be re-certified if it is more than 4 months old at the time of closing. This is crucial because property values can change significantly over time, especially in dynamic real estate markets. A fresh appraisal ensures that the value the lender is using to assess the risk of the mortgage is accurate and reflects current market conditions. If an appraisal is allowed to be older than 4 months without a re-certification, it may not provide a reliable basis for lending decisions, potentially putting both the lender and borrower at risk.

While appraisals younger than 4 months are typically still considered valid, older appraisals can result in inaccurate valuations that don’t align with the current market. This is why any appraisal over that 4-month threshold necessitates a re-certification to confirm the value remains appropriate for the transaction at hand.