When it comes to buying or selling a home, the appraisal is a critical step in the mortgage process. But did you know that simple property issues can delay closing? At KTL Performance Mortgage, we often see the same four appraisal problems come up during home purchases. By addressing them early, realtors and home sellers can speed up the loan process and get everyone to the closing table faster.
1. Attic & Crawl Space Access
Appraisers must be able to access the attic and crawl space. If the entrance is blocked or not obvious, leave clear instructions and make sure furniture or boxes aren’t in the way. If a ladder is needed, provide one before the appraisal.
2. Utilities Turned On
Appraisers will test light switches and faucets to confirm utilities are working. If power or water is shut off inside the home (even if turned on outside), it can trigger a re-inspection and delay closing.
3. Missing Handrails
Any stairway with more than 3 steps requires a handrail. Porches and decks above ground level need railings for safety. Adding handrails before the appraisal helps avoid unnecessary issues.
4. Chipping & Peeling Paint
Especially for FHA, VA, and USDA loans, peeling paint is a health and safety concern. This applies to the home itself as well as outbuildings. Repainting problem areas before the appraisal prevents costly re-inspections.
Taking care of these four common issues upfront can save valuable time and help you avoid appraisal-related delays. The faster we get to the closing table, the better the experience for everyone involved!
👉 If you have questions about the appraisal process or home loan requirements, the team at KTL Performance Mortgage is here to help. Contact us today to get started.
FAQ: Common Home Appraisal Issues
A: The four issues we see most often are lack of attic/crawl space access, utilities not turned on, missing handrails, and chipping or peeling paint. These can cause re-inspections and slow down closing.
A: Yes. Government loans must meet HUD property standards, which are more detailed than conventional loans. However, conventional loan standards have tightened in recent years and often overlap with FHA/VA/USDA requirements.
A: If the home was built before 1978, peeling paint is considered a health hazard due to potential lead-based paint. Even on newer homes or outbuildings, most underwriters will require peeling paint to be corrected in order for the loan to proceed.
A: Typically, no. In most cases, appraisers must verify that basic utilities (electric, water, gas) are working inside the home. If utilities are off, a re-inspection will be required once the utilities are on and functional, which can delay closing.
A: Make sure attic and crawlspace access points are clear, utilities are on, safety items like handrails are installed, and any peeling paint is addressed. Taking care of these items before the appraiser arrives helps prevent delays.
