Form 1004D Explained: The Completion Report That Actually Closes Your Loan

Form 1004D Explained: The Completion Report That Actually Closes Your Loan

Here's the moment that trips up more borrowers than any other: the repairs are finished. The contractor is paid. The house is fixed. And the loan still won't close.

That's because in mortgage lending, the work being done and the work being certified are two different events. The document that bridges them is Form 1004D — the Appraisal Update and/or Completion Report — and until it's in the lender's hands, your file sits exactly where it was.

This guide covers what the 1004D is, its two distinct uses, who orders it, what it costs, how long it takes, and the specific mistakes that get one rejected.

What Form 1004D actually is

Form 1004D is a standardized appraisal form published by Fannie Mae (and used in parallel by Freddie Mac as Form 442). It's short — a single page in substance — and it exists to let an appraiser make a follow-up statement about a property they've already appraised, without producing an entirely new appraisal report.

It has two distinct sections, and understanding which one applies to you eliminates most confusion.

Part 1: The Appraisal Update

This section addresses value over time. It lets the appraiser certify whether the property has declined in value since the original effective date. Lenders use it when an appraisal is aging and needs to be refreshed to remain usable, or when there's a question about market movement between appraisal and closing.

An update generally involves an exterior observation and a market review. It does not require interior access. Importantly, an appraisal update can only be used to confirm value has not declined — if the appraiser concludes value has dropped, a new appraisal is needed.

Part 2: The Certification of Completion

This is the section that matters if you had repair conditions. Here the appraiser certifies that specified repairs, alterations, or conditions were satisfactorily completed in accordance with the original appraisal's requirements.

This is the form that clears "subject to repairs." It is what your underwriter is waiting for. Typically it requires the appraiser to observe the completed items — often with interior access depending on what was repaired — and to attach photographic evidence.

The two parts can be used together. On a file where the appraisal has aged and repairs were completed, one 1004D can address both.

Where the 1004D fits in the loan process

1. Original appraisal is completed and comes back "subject to" specified repairs
2. Underwriting issues those repairs as loan conditions
3. Repairs are negotiated, assigned, and completed
4. The lender orders the 1004D — normally from the original appraiser
5. The appraiser observes the completed work and photographs it
6. The 1004D is delivered to the lender
7. Underwriting clears the condition and the file moves to clear-to-close
8. Loan funds

Notice who orders it: the lender. Borrowers, sellers, and agents cannot order a 1004D directly, and appraisers generally can't accept the assignment from them — appraiser independence rules require the order to come through the lender or its appraisal management company. This surprises people who, wanting to be helpful, try to call the appraiser directly and accelerate things. It doesn't work, and it can create a compliance problem.

What you can do is make sure your loan officer knows the instant the last repair is finished, and hand over a complete documentation package the same day.

Who performs it, and does it have to be the original appraiser?

The original appraiser is strongly preferred and is who the lender will normally order from. The reason is simple: they observed the original condition, so they're in the best position to certify that the specified items were corrected.

A substitute appraiser can be used when the original is unavailable — retired, relocated, on the disqualified list, or simply not responding. But it adds friction. A replacement appraiser has to familiarize themselves with the original report and conditions, and lenders sometimes require additional review. If your original appraiser is responsive, that's an asset worth protecting by not wasting their trip.

What it costs

A 1004D is far cheaper than a full appraisal because the scope is narrow. Typical ranges:

| Scenario | Typical cost | |---|---| | Exterior-only appraisal update | roughly $75–$175 | | Completion certification with interior observation | roughly $125–$300 | | Combined update and completion | roughly $150–$350 | | Additional trip after an incomplete first visit | full fee again, commonly $125–$300 |

These are typical market ranges, not fixed prices — fees vary by region, appraiser availability, property complexity, and how rural the property is. In tight appraisal markets or for remote properties, expect the higher end.

That last row is the one to internalize. Every incomplete re-inspection costs another full fee and another wait in the appraiser's queue. The fee is annoying; the calendar days are what actually hurt.

How long it takes

The physical observation takes 15 to 30 minutes. The timeline is almost entirely queue and administration:

• Lender orders the 1004D: same day to 2 days
• Appraiser schedules the visit: 1 to 5 business days, depending on market and season
• Report delivered after the visit: 1 to 3 business days
• Underwriting reviews and clears: 1 to 3 business days

Realistically, 4 to 10 business days from "repairs done" to "condition cleared" in a normal market. In a busy market, on a rural property, or with a substitute appraiser, longer.

That range is why the sequencing advice in every appraisal-repair guide is the same: finish everything before triggering the re-inspection. A second cycle doesn't add a day. It adds another full 4-to-10-day loop.

Why 1004Ds get rejected or kicked back

This is the practical heart of the matter. The common failure modes:

Not every condition was addressed. The appraisal listed six items and five were done. The appraiser cannot certify partial completion — the form contemplates the specified repairs being satisfactorily complete. Result: another trip.

The work doesn't match the requirement. The condition called for the peeling exterior paint to be stabilized using lead-safe practices; someone painted over it. The condition called for GFCI protection; someone replaced the outlet with a standard receptacle. The appraiser is certifying against the original language, not against effort.

No documentation. The appraiser can see that a water heater was replaced but often needs an invoice showing who did it and when — particularly on licensed trades. Missing invoices and receipts are a frequent cause of follow-up requests.

Unlicensed work on a licensed-trade item. Electrical, plumbing, HVAC, structural, roofing, and lead-related work performed by an unlicensed party will frequently be rejected by underwriting even when it looks fine. Lenders want a licensed contractor's name and number on the paper.

No access. The appraiser arrives and cannot get in, or the utilities are off and the repaired system can't be tested. Trip wasted, fee charged.

Work not actually finished. The contractor said "done" and left a punch list. The appraiser sees it.

The documentation package that gets a 1004D through on the first try

Assemble this before the appraiser returns and give it to your loan officer to forward:

• The original condition list, verbatim from the appraisal
• Dated "before" photos of each conditioned item
• Dated "after" photos of each conditioned item, framed so the item is unmistakable
• Itemized invoices from each contractor, showing the work performed
• License numbers and insurance information for licensed trades
• Permits and inspection sign-offs where the work required them
• Lab results or specialist certifications where applicable — water tests, septic certifications, engineer letters, pest treatment records
• A simple item-by-item checklist mapping each original condition to the evidence of its correction

That last item sounds like overkill. It isn't. An appraiser and an underwriter each verifying six conditions against a stack of unsorted receipts will take longer and ask more questions than one working from a clean crosswalk.

Special situations

Repairs done in stages. Sometimes unavoidable — a roof waiting on weather, a system waiting on a part. Tell your loan officer up front so the re-inspection isn't ordered prematurely, and expect to pay for each trip if multiple are genuinely required.

Escrow holdback. Where a holdback was approved and the loan closed with work outstanding, a 1004D is still typically required after completion to release the escrowed funds. The document doesn't disappear; it just moves after closing.

New construction. On new builds, the 1004D certifies the home was completed per the plans and specifications the original appraisal relied on.

Appraisal aging. If your file drags long enough that the appraisal approaches its validity limit, the update section may be needed alongside the completion certification.

How AppraisalFix shortens this timeline

The repair itself is rarely the bottleneck — the search is. A homeowner gets a repair list, then starts cold-calling contractors who don't return calls, can't produce insurance certificates, or can't start for three weeks. Meanwhile the rate lock burns.

AppraisalFix was built for exactly this window. We read the appraisal, isolate the lender-required items, match the file to licensed and insured repair professionals already vetted in that market, document the completed work with before/after photos and receipts, and coordinate the 1004D recertification with the original appraiser. Concretely: we assemble the item-by-item documentation crosswalk, confirm every condition is genuinely closed before the re-inspection is triggered, and hand the lender a package the appraiser can verify in one visit — which is the difference between one 1004D cycle and two.

Have an appraisal with repair conditions? Submit the report and we'll return a scoped repair plan with vetted local pros — usually within 24 hours.

Frequently asked questions

Who orders the 1004D — can I order it myself?

The lender orders it, normally from the original appraiser or through its appraisal management company. Appraiser independence rules mean borrowers, sellers, and agents generally cannot order it directly. What you can do is notify your loan officer immediately when repairs are complete.

How much does a 1004D cost?

Typically $75–$175 for an exterior-only update and roughly $125–$300 for a completion certification with interior observation. Ranges vary by market and property. Each additional trip after an incomplete visit generally costs another full fee.

How long does a 1004D take?

Usually 4 to 10 business days from repairs finished to condition cleared, counting the order, scheduling, report delivery, and underwriting review. The inspection itself takes under half an hour.

Does the 1004D have to be done by the original appraiser?

It's strongly preferred, because they observed the original condition. A substitute can be used if the original is unavailable, but it usually adds review time.

What's the difference between an appraisal update and a completion report?

The update addresses whether value has declined since the original effective date, generally exterior-only. The completion report certifies that specified repairs were satisfactorily completed. Both live on Form 1004D and can be used together.

Can the loan close before the 1004D is received?

Not when the appraisal was made subject to repairs — the condition stays open until the certification is delivered. The exception is an approved escrow holdback, where the loan closes and the 1004D is required afterward to release escrowed funds.

What if the appraiser says the repairs weren't done correctly?

The condition stays open. You'll need to correct the work to match the original requirement and pay for another re-inspection trip. This is why matching the exact condition language matters more than doing something that looks equivalent.

The bottom line

Form 1004D is a one-page document that stands between finished repairs and a funded loan. It's inexpensive and fast in isolation, but it lives inside a chain of orders, queues, and reviews — so the goal is always to need exactly one. Finish every conditioned item, match the original language precisely, use licensed trades where required, document everything, and hand your lender a package the appraiser can verify in a single visit.