The appraisal is a document from a state governed, state licensed appraisal professional that gives an estimate of a property’s fair market value based on the sales of comparable homes in the area and the features of a property. An appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property.
Why do I need to have an appraisal done?
The appraisal is done to determine the value of the property you are purchasing or refinancing and to ensure the property type is eligible for financing.
Can I hire my own appraiser?
Due to the Appraisal Independence Requirements (AIR) issued by Fannie Mae, an appraisal must be ordered under specific guidelines to ensure the inspection and value assigned by the independent appraiser are completely unbiased from any outside influences.
Does someone have to be at the home for the appraisal?
Someone must be present as the appraiser will need to have access inside the home.
Will the appraiser contact me before the scheduled appointment?
The appraiser will be in contact to confirm the scheduled date and time prior to coming.
Can I use a recently completed appraisal for another lender?
In some cases, it is possible to accept a transferred appraisal assuming we can verify that the Appraisal Independence Requirements have been complied with.
How long is the appraisal good for?
For conventional, FHA and USDA loans, appraisals are good for 120 days. For VA loans, appraisals are good for 180 days.
Can I dispute the appraisal if I don’t agree with the value?
Typically the appraisal can only be disputed if you have one or more of the following factors:
- Viable comparable properties that were not included in the original report.
- Information to support inaccuracies of the appraisal report.