When you make an offer on a home, you might be eager to know how long it will take from the home appraisal to the final closing.

In a smooth homebuying process, it typically takes around 30 to 45 days to complete everything, including the appraisal and the final approval of financing by your lender. However, if the appraisal uncovers issues with the property—such as necessary repairs that must be addressed before the loan is approved—you should anticipate delays. In these cases, the closing process may take longer to allow time for corrections, potentially pushing back your move-in date.

It’s important to remember that while a home appraisal assesses the property’s value and general condition, it’s not as thorough as a home inspection. Even if the appraisal comes back without major concerns, scheduling a separate home inspection gives you a clearer picture of the property’s true condition. This extra step can help you make a well-informed decision before finalizing your purchase.

Understanding Home Appraisals: What You Need to Know

What Is a Home Appraisal?

A home appraisal is a professional assessment of a property’s market value. Lenders usually require an appraisal to confirm that the loan amount aligns with the home’s worth. This ensures that if the borrower fails to repay the loan, the lender can recover their investment by selling the property.

For government-backed loans like FHA or USDA loans, an appraisal also serves another purpose. It verifies that the home meets specific federal guidelines, ensuring the property qualifies for financing. A thorough home appraisal protects both the lender and the buyer by providing a realistic valuation of the home’s worth.

What Happens During a Home Appraisal?

During a home appraisal, a professional appraiser thoroughly examines both the inside and outside of the property. They take photos, note important details, and assess the overall condition of the home. Additionally, they evaluate the surrounding neighborhood, considering factors like nearby buildings, parks, and major roads that may impact the home’s value.

To determine a fair market value, the appraiser compares recent sale prices of similar homes in the area. They combine this market data with their in-person observations to reach a final valuation. This information is then compiled into a report, which is typically sent to the lender, while the borrower also receives a copy.

In most cases, the borrower is responsible for covering the cost of the home appraisal, making it an essential expense in the home-buying or refinancing process.

Home Appraisal Timing and the Closing Process

The time between a home appraisal and closing can vary depending on the lender, loan type, and any unexpected delays. In general, many lenders estimate that the process takes around 30 to 45 days, but this timeline isn’t set in stone.

If closing takes longer than expected, lenders may still accept the original home appraisal for a certain period. The length of time an appraisal remains valid depends on the type of loan:

• Conventional Loans – Most conventional loan appraisals are valid for 120 days. If the mortgage is backed by Fannie Mae or Freddie Mac, the appraisal is valid for 12 months, but an update is required after four months.
• FHA Loans – The standard validity period for an FHA loan appraisal is 120 days, though it can be extended by 30 days in some cases.
• USDA Loans – USDA loan appraisals are good for 150 days, but if updated, they can be extended to 240 days.
• VA Loans – A VA loan appraisal results in a Notice of Value, which remains valid for six months, with possible extensions if needed.

Since a home appraisal plays a key role in the mortgage process, understanding these timelines can help prevent unnecessary delays in securing financing.

What If a Home Doesn’t Pass the Appraisal?

A home appraisal may reveal that the appraised value is lower than the agreed-upon sale price. When this happens, buyers have a few options to consider. One approach is to dispute the appraisal by providing the lender with additional evidence of comparable home sales through a real estate agent. This can sometimes persuade the lender to adjust the valuation.

Another option is to renegotiate with the seller and try to lower the purchase price to align with the appraisal. If the seller is unwilling to adjust, the buyer may choose to cover the difference out of pocket, though this comes with added financial risk. In cases where the appraised value is significantly lower, walking away from the deal might be the best decision.

Sometimes, a home may fail an appraisal because it does not meet the lender’s standards for the loan. If the property has significant condition issues, the lender may decide it is not worth financing. In other cases, the lender might require the seller to complete repairs before approving the loan. Once the repairs are finished, a compliance inspection may be necessary to confirm that the home meets the required standards.

Regardless of the outcome, appraisal fees must be paid, as they cover the cost of evaluating the property and conducting market research. Understanding the impact of a home appraisal can help buyers make informed decisions when navigating the home-buying process.

What If the Closing Date Gets Delayed?

If your closing date is pushed back, it’s important to check how long your mortgage rate lock lasts. Typically, rate locks are valid for 30 to 60 days from when you made your offer. If closing takes longer than expected and your rate lock expires, your interest rate could change—possibly increasing your monthly payments. Additionally, if you paid a fee to lock in your rate, you might lose that money if the lock expires.

To avoid this, you may have the option to extend your rate lock by paying your lender a fee. Extension costs vary, but they often range from 0.125% to 0.625% of the loan amount for an extension lasting seven to 30 days. It’s worth checking with your lender to understand your options if a delay seems likely.

If your rate lock expires and you don’t extend it, your loan will be subject to the market interest rate at the time of closing. This could be beneficial if rates drop, but if they rise, you may end up with a higher borrowing cost. Keeping an eye on timelines and planning ahead can help prevent unexpected expenses when securing financing for a home appraisal and purchase.

Home Appraisal vs. Home Inspection: What’s the Difference?

Home appraisals and home inspections serve distinct but equally important roles in the home-buying process. Both are recommended before finalizing a home loan, but they focus on different aspects of the property.

A home appraisal determines the fair market value of the property. Lenders require this to ensure the home is worth the loan amount. The appraiser evaluates the home’s condition, compares it to similar properties, and assesses external factors like the neighborhood and recent sales data.

A home inspection, on the other hand, is a more in-depth evaluation of the home’s physical condition. A licensed inspector examines the structure, electrical systems, plumbing, HVAC, and potential safety concerns. This helps buyers understand any defects or repairs needed before committing to the purchase.

Including an inspection contingency in your offer is a smart move. If the inspection uncovers major issues, you have options: negotiating a lower price, requesting the seller to handle repairs, or walking away from the deal altogether. While a home appraisal helps secure financing, a home inspection ensures you’re making a sound investment.

What Comes Next After a Home Appraisal and Inspection?

Once the home appraisal and inspection are complete, the next step is preparing for closing. This final stage involves reviewing important documents, comparing service costs, and ensuring everything is in order before finalizing the purchase.

One way to save money is by shopping around for closing services. Certain costs, such as title insurance or settlement fees, may vary by provider. You can find out which services allow price comparisons by checking Section C on the second page of your loan estimate. Your lender may provide a list of recommended providers, but you can also research your own options.

It’s also important to stay on top of your closing schedule. Request copies of key documents, including the closing disclosure, promissory note, mortgage, and deed, at least three business days before closing. Take the time to carefully review these papers, ensuring that all terms match what was outlined in your loan estimate.

If anything seems unclear, don’t hesitate to ask your lender for clarification or consult an attorney for guidance. A thorough review of these documents can help prevent surprises and ensure a smooth home-buying process.

Conclusion

The time between a home appraisal and closing varies, but understanding the process can help you navigate it smoothly. In most cases, closing takes about 30 to 45 days, but delays can occur if the appraisal uncovers issues that need to be resolved. Staying informed, keeping in touch with your lender, and preparing for potential obstacles—such as a lower-than-expected appraisal or required repairs—can help ensure a smoother transaction. Whether you’re a first-time homebuyer or experienced in real estate, knowing how appraisals impact the closing timeline puts you in a better position to finalize your purchase with confidence.

Frequently Asked Questions

What should I do while waiting for closing after an appraisal?
During this period, stay in touch with your lender, avoid major financial changes (such as opening new credit accounts), review your closing documents, and prepare for moving. Ensuring all necessary paperwork is in place can help prevent last-minute delays.

Can a home appraisal delay closing?
Yes, an appraisal can delay closing if it comes in lower than expected or if the lender requires repairs before approving the loan. These issues may require renegotiation or additional inspections, which can extend the closing timeline.

What happens if the appraised value is lower than the purchase price?
If the appraisal is lower than the agreed-upon price, buyers can negotiate with the seller for a lower price, pay the difference out of pocket, or dispute the appraisal with additional comparable sales data. If no agreement is reached, the buyer may have to walk away from the deal.

Can a buyer back out after the appraisal?
Yes, a buyer can back out after the appraisal, especially if the appraisal contingency is included in the contract. If the appraised value is lower than expected and financing terms change, buyers may choose to cancel the purchase without penalties.

What if the home appraisal comes back higher than the purchase price?
If the appraised value is higher than the agreed-upon price, it benefits the buyer because they’re getting the home for less than its market value. This doesn’t affect the loan amount, but it provides instant equity in the property.

Users Also Say

How long does it take to close on a house after an appraisal?

Jeff R****nd

The timeline depends on the steps already completed. If you’ve been pre-qualified and your credit is underwritten and approved, the lender primarily needs the appraisal to confirm the home’s value and eligibility.

If the appraisal report comes back without issues, and the title, documents, and other necessary items are already in place, the process moves quickly.

By law, the appraisal must be disclosed to you at least three days before closing, but you can waive this requirement if you want to close sooner.

After that, the final property eligibility check takes just a few hours, followed by the closing statement, which typically takes about a day. In the best-case scenario, you could close in as little as 24 hours, though a more typical timeframe is around three to five days.

P*****is Sc**t

If the appraisal doesn’t lead to further price negotiations, the closing timeline largely depends on a few key factors. The buyer must secure their mortgage, a title company needs to confirm there are no outstanding loans or judgments on the property, and the seller must be ready to vacate.  

Typically, this process takes at least a month, but timelines can vary based on lender speed, title clearance, and the seller’s moving arrangements.

S**ve A***si

If the lender is handling the appraisal, the closing date won’t be set until your loan is approved. This process typically takes around 3–6 weeks, though it can take longer depending on the lender’s workload and how quickly the borrower provides the required documentation.

Once funding is complete—and assuming escrow and title have handled their parts of the transaction—the final closing date ultimately depends on an agreement between the buyer and seller.