Repair item identified through appraisal review that must be completed or resolved for mortgage approval.
An appraisal repair requirement is a repair item identified through the appraisal or lender review that must be completed, documented, or otherwise resolved before the mortgage can close.
An appraisal repair requirement matters because property condition can affect whether the home is acceptable collateral. A lender may not be willing or able to close until required repairs are completed or handled under an approved structure.
It also matters because borrowers often treat repairs as buyer-seller negotiation items, while the lender may treat some repairs as loan conditions.
Borrowers usually encounter appraisal repair requirements after the Appraisal Inspection or appraisal report review. The lender may require photos, invoices, a completion certification, or a Final Inspection.
The term becomes practical when a closing timeline changes because repairs must be completed before loan funding.
An appraiser observes peeling exterior paint on a property tied to a government loan program. The lender requires the paint issue to be corrected and verified before closing.
Appraisal repair requirement differs from Appraisal Condition because it is specifically a repair-related condition.
It differs from Cost to Cure because cost to cure estimates the cost of correcting a problem, while the repair requirement is the lender’s required action.
It also differs from Escrow Holdback because a holdback is one possible closing arrangement for unfinished work, not the repair issue itself.