Things to Consider When Scheduling an Appraisal: Condition of the Property
The home is the most valuable asset that many American’s own today. For this reason, it is important to protect your investment with routine maintenance and upkeep. While normal wear and tear is to be expected, the appraiser is required to report on the condition of the property being appraised and assign a condition rating.
The condition ratings can range anywhere from C1 (the entire structure and all components are new) to C6 (substantial damage or deferred maintenance that may affect the safety, soundness, or structural integrity of the dwelling). For most lenders, including Royal United Mortgage LLC NMLS# 13390, a minimum property rating of C4 is required in order to lend.
A property in C4 condition has been adequately maintained and requires only minimal repairs to building components and/or cosmetic repairs. This means that all major building components (foundation, roof, central HVAC, etc.) have been adequately maintained and are functioning as intended.
An appraisal for a property identified in C5 or C6 condition will include a list of repairs required to be completed to bring the property to C4 condition. These repairs must be verified as completed before the loan process can be finalized.
If there are concerns about the condition of your property, it is encouraged to send photos of any areas of concern to your loan advisor before completing the appraisal process. Your loan advisor can then seek the opinion of an experienced underwriter before scheduling the appraisal.
Written By: Neil Daily, Underwriter at Royal United Mortgage LLC