What will appraiser look for

This can include lot shape, lot topography, positive views such as water, mountains, or valleys and negative views such as powerlines, industrial facilities or cemetery, or traffic noise, often referred to as traffic pollution. In addition to the immediate exterior, the appraiser observes whether the house is situated in an urban, suburban or rural area and the type of neighbourhood.

Home improvements are described in terms of their age, the extent of the work, room allocation, quality of construction and the current condition. An experienced appraiser can differentiate the varying quality of work and will comment on the construction, calling it fair, average, good, or custom. The appraiser will document the type and quality of finishings and improvements such as flooring, windows, mechanical work, cabinets and countertops.

It is important the appraiser appropriately categorize the improvements so he or she can accurately compare the subject property to the recent comparable sales and ensure the final estimate of value is accurate and well supported.

A low appraisal can prevent a sale from moving forward. Here are a few ways to do so:. While a clean house does not directly impact its value, it can impact the presentation of the features that do. A clean and clutter-free home makes it easier for home appraisers to view features that contribute to the value of the home.

Loan officers and brokers cannot select the appraiser, nor can the borrower. The lender may order the appraisal through a third party called an appraisal management company AMC. Many lenders—especially small, local ones—have direct referral relationships with a small group of individual appraisers and may not use an AMC. Or the lender may have an in-house independent appraisal department.

The appraiser should have local knowledge of the area called market competence. Appraisers are expected to follow the Uniform Standards of Professional Appraisal Practice issued by the Appraisal Foundation, a professional organization, though these standards are not law. The borrower must pay for the appraisal regardless of whether the loan closes because the appraiser still did the work. At best you can search for recent comparable sales on websites such as Zillow and Redfin, but these records may be inaccurate or incomplete.

Appraisal fees vary by state, but appraisers must charge customary and reasonable fees for the area. The value the appraiser gives your home largely depends on the recent sales prices of comparable properties.

Getting your home appraised is similar to going on a first date, says Ailion. While you have no idea how your partner will like or evaluate you, being well-groomed substantially improves your chances of being deemed attractive. Any pets should be contained and [any] smells masked. According to Vaccari, the appraiser cares about the following:. Mortgage lending discrimination is illegal. If you think you've been discriminated against based on race, religion, sex, marital status, use of public assistance, national origin, disability, or age, there are steps you can take.

No such subjective considerations apply to an appraisal. Be sure everything works e. You have completed a major step toward refinancing your mortgage and saving money.

Being armed with these figures can give you some bargaining power when you meet with your lender. If you want to appeal a low appraisal, you will have a better chance of succeeding if you offer strong data to support your case.

Given the strict federal regulations governing the process, is there anything you can do about a low appraisal? If you are not able to successfully challenge a low appraisal, how do you ensure that the refinance goes through?

You can choose to pay the PMI for now. If home values continue to rise, you can later provide comparable sales to your mortgage servicer and ask it to remove PMI, even if you have not yet paid down much of your principal.

The home appraisal process typically takes seven to 10 days. The timeframe depends on the property, the complexity of the appraisal, and the appraiser's schedule i. The appraiser may spend 30 minutes or up to several hours examining the home in-person. Once the appraiser has evaluated the home, it takes a week or two to compile the appraisal report.

After the appraisal, the next step is underwriting. The mortgage lender reviews the loan file to ensure everything is in order, assesses the risk, and either approves or denies the application. Some borrowers might receive conditional approval, meaning some item needs to be resolved or explained.

If the mortgage or refi is approved, the next step in the process is closing. If you're trying to buy or refinance a home, a good appraisal is key. If the appraisal comes in too low, you might not be approved, or you could face higher interest rates. There are a number of factors that can negatively affect your appraisal, including:. In general, the appraisal happens two weeks before the closing date—so it should be ordered about three to four weeks before closing.

Understanding how the appraisal process works will give you the best chance of getting an appraiser to assign the highest possible value to your property. Department of Veterans Affairs. Department of Housing and Urban Development. Be available to answer questions but allow them to do their job. Appraisers are looking for the overall structure of the home to gauge the quality of the build. The size of the property will be factored into the total value. Also, the upkeep of the interior and exterior features help tell the story of the home.

What improvements have happened since you moved in? Was a new school, restaurant, or community park built? Note if your roads have been recently re-paved. What is within 10 miles of your home? A luxury shopping center, university, or sports stadium can all affect the perceived value of your home.

First, the lender submits the application to DU Desktop Underwriter. DU has a database of over 26 million appraisal reports and property analytics. This data helps determine the value for homes without the appraisal. Second, an offer is issued by DU to waive the appraisal. Third, the lender would then accept. Fourth, the lender gives the loan and all documents needed to Fannie Mae. PIW may not work for all homebuyers.

Talk with your On Q Mortgage Consultant to learn more! One way to help lessen or get rid of your MIP is to get a new appraisal. Your lender will help coordinate that. Appraisers are trained to be careful and fair in their evaluations. This material is provided for information and educational purposes only. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness, and as a result, there is no guarantee it is without errors.

Before opening On Q Financial in , John Bergman originated and funded units a year as a loan officer. Great team to work with on my refinancing! Process for providing required documentation was seamless and easy to track loan status. If you are looking to obtain a new loan or refinance I would definitely recommend reaching out to On Q Financial!