In real estate, the completion certification (Form 1004D) plays a crucial role in the final stages of a property transaction and is often the last item needed for the buyers to move in or the borrower to close the loan. This form ensures that any required constructions, repairs, or alterations have been completed before the closing of a loan. However, integrating virtual property inspections into this process can bring numerous benefits, making the entire process more efficient and convenient. In this article, we will explore the completion certification (Fannie Mae® Form 1004D) and how virtual property inspections enhance it.
Understanding the Completion Certification (Form 1004D)
The completion certification (Fannie Mae® Form 1004D), also known as the “Appraisal Update and/or Completion Report,” is a standardized document used in the real estate industry. This form is typically required by lenders when the real estate property being purchased or refinanced needs construction to be completed, repairs, renovations, or other improvements. It serves to verify that these required changes have been completed and that the property is now in compliance with the necessary standards.
The form is filled out by a licensed appraiser who inspects the property to ensure that the required work has been done, and it includes essential information such as the property’s address, the borrower’s name, the appraiser’s certification, and the property’s current value.
The Benefits of Using Virtual Property Inspections with Form 1004D
Incorporating virtual property inspections into the completion certification process brings several advantages:
Efficiency: Virtual property inspections save time for both appraisers and the property point of contact. Instead of coordinating in-person visits, all necessary documentation can be provided electronically. This reduces scheduling conflicts and accelerates the verification process. This can also lead to fast underwriting turn times so loans can be closed earlier than with traditional inspections.
Convenience: Virtual inspections offer unparalleled convenience for all parties involved. It is unnecessary to have the appraiser back to your home with the Valligent 1004D Virtual Completion Certificate process. Just schedule a time that works for you, and the Valligent team will be ready to send you a link to begin the streaming process.
Health: Especially during times of a pandemic, the safety and health of appraisers and property points of contact are paramount. Virtual inspections minimize physical contact and reduce the risk of virus transmission, ensuring the safety of all involved.
Cost Savings: Traditional property inspections often come with travel expenses for appraisers. Virtual property inspections eliminate these costs, making the process more cost-effective for appraisers.
Detailed Documentation: Virtual property inspections allow for a comprehensive visual record for the company conducting the inspection of the property, with photos, videos, and detailed descriptions. The data is stored in accordance with GSE requirements. This documentation is valuable, ensuring that all repairs and improvements have been completed as required.
Accessibility: Virtual property inspections provide accessibility to properties that may be in distant locations or difficult to reach. This makes it easier to complete the Form 1004D, even for properties far from the appraiser’s usual work area.
Valligent’s Completion Certification: Virtual (Form 1004D)
One reliable option to take advantage of the benefits of virtual property inspections for Form 1004D is Valligent’s 1004D Virtual Completion Certificate, which modernizes the property inspection process, allowing for the swift and convenient verification of home construction or repair completion.
Through video streaming, appraisers guide property contacts during inspections, enabling orders to be finalized within hours, significantly reducing turnaround times. This virtual approach is easily accessible on camera-enabled mobile devices and requires only a 10 to 15-minute inspection for completion verification. It ensures data security and confirms the location and timestamp of photos through encryption and geo-tracking. The report serves as an accurate update for lenders and property points of contact, making it ideal for various use cases, including new or proposed construction and existing construction repairs or alterations. To learn more, click here.
In Conclusion
The completion certification (Fannie Mae® Form 1004D) is an essential document in real estate transactions, ensuring that properties meet the necessary standards before closing a loan. Incorporating virtual property inspections into this process can significantly improve efficiency, convenience, safety, and cost-effectiveness. As technology continues to advance, virtual property inspections are likely to become a growing standard practice in the industry, simplifying and enhancing the property inspection process for all parties involved.
