Congratulations. You are now in step number 4. We have just ordered your appraisal.
What to expect:
After ordering your appraisal the appraiser will be going out and inspecting the property. The appraisal can take 7 - 10 days to complete. The borrower does not need to be at the property with the appraiser during the inspection. The appraiser normally has a lock box key to access the property. if the appraiser does not have a key they will contact the listing agent to access the property.
There is nothing that the borrower needs to do during this step. Before we receive your appraisal you will receive a copy in your email. We will be sending you an email after we receive and will give you next steps in the process. If you have any questions while we are waiting for your appraisal please give us a call :)
Communication with the Appraiser:
We are not allowed, per federal regulations, to talk to the appraiser. If there are questions for the appraiser or things we need to communicate to them we must go through a third party appraisal management company.
Who chooses the Appraiser:
Appraisals are required for all home loans and mortgage refinancing transactions. Federal regulations require the lender to use a third party Appraisal Management Company (AMC) to chose the appraiser that is going to inspect the property. The AMC will randomly pick an appraiser that is on their list. Loan Simple can chose which appraisers are on the AMC's list. All the appraisers that are on the AMC list have been carefully chosen by us and are reputable, knowledgable, and local.
Possible Delays:
- Appraiser Schedule
- Sometimes the appraisers getting backed up and can cause delays in receiving your appraisal. Normal turns times for receiving appraisals are 7-10 days. Anything after 10 days will cause a delay in us closing your home loan.
- Required Repairs
- If the property comes back needing repairs, this can cause a delay in closing. Sometimes there is more negotiation needed, sometimes the repairs can take time.
- Valuation
- Sometimes if the value of the home comes in less, this can cause delays as there is more negotiation and sometimes an appraisal rebuttal (requested by the seller) will cause more time needed to close.
- Appraisal Review
- Sometimes the appraisal is flagged as needing more comps to support the appraisers opinion. This can happen when purchase homes that are rural and are hard to find similar homes close to the subject property
- Sometimes the underwriter will request another appraiser to review our appraisal for accuracy and ask the 2nd appraiser to give an opinion of value based on the 1st appraisal. This happens when the underwriter disagrees with the value given by the appraiser.
