"NO" on 1004D. Is re-inspection mandatory?

[poorcustomer]

Hi,

I am buying a new construction and a final inspection was done today. The appraiser completed the Certification of Completion section on 1004D and selected the NO option for "HAVE THE IMPROVEMENTS BEEN COMPLETED IN ACCORDANCE WITH THE REQUIREMENTS AND CONDITIONS STATED IN THE ORIGINAL APPRAISAL REPORT" with a comment stating "At the time of inspection, the improvements
have been completed in a workmanlike manner and with quality materials and in accordance with the requirements and conditions stated in the original appraisal report with exception of the landscaping."

The only thing pending in the house is the sod because of rain and i have confirmed that sod is not a local requirement.

Does the selection of NO prevent lender from closing? Will this require a reinspection and an updated Certification of Completion with YES selected?

My lender is insisting that a re-inspection will be required. Please advice.

 

[Terrel L. Shields]

Post only once please - see forum rules

 

[Overimprovement]

Sounds like the report contradicts itself. The wording says it has, but yet no was checked...is the sod mentioned anywhere in the 1004D?

As to whether it will prevent closing, probably--that 'no' needs to go away if it is a Fannie/FHA type loan. If it is an in house portfolio loan maybe not.

 

[Sadie]

If the original appraisal included landscaping, then no, the conditions of the original appraisal have not been met. That being said, the underwriter may have some leeway here to allow things to move forward. You have an Occupancy cert so no new one is needed.

 

[sputnam]

Lenders 'rules' about it differ. Some will require the improvements to be complete before closing. They will send the appraiser back for another inspection. Some will close the loan but, will escrow some of the money to be paid to the builder when everything is completed. If it's a relatively small amount... minor things to be completed... some Lenders will close the loan.

 

[Tom D]

it's the lenders decision as what to do. we have cold weather for months, lender knows you can't finish some outside ground work until it gets warm again. they escrow for the work, which you should obviously want them to do, so the contractor does come back to finish the work.

 

[pattycake3]

If sod is part of the contract it needs to be completed. If it's not listed in the contract the 1004D should not require it.

 

[Tom4value]

Being in the northeast, been there, done that. I state, “improvments have been done execept for the landscaping, which will be done when weather permits.”.

Then it is up to the underwriter if you go back or they close.

 

[Cob]

Hi,

I am buying a new construction and a final inspection was done today. The appraiser completed the Certification of Completion section on 1004D and selected the NO option for "HAVE THE IMPROVEMENTS BEEN COMPLETED IN ACCORDANCE WITH THE REQUIREMENTS AND CONDITIONS STATED IN THE ORIGINAL APPRAISAL REPORT" with a comment stating "At the time of inspection, the improvements
have been completed in a workmanlike manner and with quality materials and in accordance with the requirements and conditions stated in the original appraisal report with exception of the landscaping."

The only thing pending in the house is the sod because of rain and i have confirmed that sod is not a local requirement.

Does the selection of NO prevent lender from closing? Will this require a reinspection and an updated Certification of Completion with YES selected?

My lender is insisting that a re-inspection will be required. Please advice.

It's YOUR lender, YOUR lender is insisting that a re-inspection will be required, there is NO ONE on here who can give really give you any advice that will help you, take it up with your lender.

 

[Shadow 123]

If landscaping is part of the contract you signed with the builder, then the 1004D is correct. Good advice is check with the lender.