Will a mortgage lender accept another's recent appraisal?

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MasonStorm@TheBogleheadsF
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Will a mortgage lender accept another's recent appraisal?

Post by MasonStorm@TheBogleheadsF » Fri Jan 10, 2014 1:34 pm

I'm currently in the middle of a ReFi application process w/AmeriSave. The Appraiser will come by later today. If, for some, reason, this loan doesn't go through w/AmeriSave, (in your experience) will other lenders accept this Appraisal Report? Appraisals are so expensive (paid $630 for one in 2011; expect to pay $515 today)!

nordlead
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Re: Will a mortgage lender accept another's recent appraisal

Post by nordlead » Fri Jan 10, 2014 1:39 pm

every lender I've talked to said they will only accept the appraisal paid specifically for them, which is bogus in my opinion. Then again, they are probably trying to protect themselves against a bogus appraisal from a friend.

rogermexico
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Re: Will a mortgage lender accept another's recent appraisal

Post by rogermexico » Fri Jan 10, 2014 2:04 pm

Likely no. There is some appraisal risk to refinancing, in that if the values don't come back high enough, you could get hit with PMI or other inferior conditions that force you to reconsider the refi and waste the upfront money. I usually ask ahead of time what the ramifications would be if appraisal doesn't come in meeting 80% loan to value. However it's hard to get an entirely clear answer to that question.

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rob
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Re: Will a mortgage lender accept another's recent appraisal

Post by rob » Fri Jan 10, 2014 2:17 pm

Well sounds like you at least get to see them - so you get some "value".... I paid for one last refi and they might have done a drive by (more likely they opened it in google street view)..... complete racket IMO. Mine even had the wrong nbr of bathrooms (it was wrong at some point and the wrong "fact" keeps floating around) :confused .
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien

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hand
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Re: Will a mortgage lender accept another's recent appraisal

Post by hand » Fri Jan 10, 2014 2:49 pm

Appraisal process is a complete racket in my opinion. I've had appraisals that differed by >25% occur within weeks of one another.
Wore, there is almost no recourse for the homeowner should the appraiser do a poor job.

Keep in mind that a really low appraisal can be a blessing in disguise if it allows you to contest tax assessment.

My experience is that every lender requires their own appraisal.

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G-Money
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Re: Will a mortgage lender accept another's recent appraisal

Post by G-Money » Fri Jan 10, 2014 4:04 pm

Nope. Sorry. Every lender I've used requires an appraisal from an appraiser they select.
Don't assume I know what I'm talking about.

MasonStorm@TheBogleheadsF
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Re: Will a mortgage lender accept another's recent appraisal

Post by MasonStorm@TheBogleheadsF » Fri Jan 10, 2014 5:10 pm

Shoots...I figured as much!!

Thanks for your replies.

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kenyan
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Re: Will a mortgage lender accept another's recent appraisal

Post by kenyan » Fri Jan 10, 2014 5:12 pm

Nope, it has to be "their own" in my experience. Maybe it's possible if you are using have two different lenders that happen to both use the same appraisal company, but I have my doubts.

We're not terribly fond of the appraisal process either, since it almost scuttled our house purchase last year. Thankfully, our appraisal came in reasonably this month for our refinance.
Retirement investing is a marathon.

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grabiner
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Re: Will a mortgage lender accept another's recent appraisal

Post by grabiner » Fri Jan 10, 2014 11:25 pm

G-Money wrote:Nope. Sorry. Every lender I've used requires an appraisal from an appraiser they select.
With the financial crisis, lenders don't directly select the appraisers, as this created conflicts of interest; an appraiser has an incentive to make the bank happy by having the appraisal come in high enough.

But what happens now creates different problems. Appraisers contract with a referral service which selects the appraiser. This increases the cost, and creates an incentive for the appraiser to minimize cost and thus effort. Appraisers also have an incentive to make the value come in low, particularly since they may be less certain; if an appraiser sees two similar homes selling for $200K and $230K and doesn't know how to adjust for different neighborhoods, he will make a more conservative estimate near $200K.

Reference from The Mortgage Professor

And this also gives the explanation of the need for multiple appraisals:
HVCC has also pretty much eliminated the ability of a borrower to use the same appraisal with multiple loan providers. Before HVCC, mortgage brokers could use one appraisal with any of the wholesale lenders with which they dealt, and lenders sometimes accepted appraisals ordered by others. Today, brokers are out of it and lenders using AMCs will not accept appraisals ordered by other lenders because they cannot be sure that the other lenders are following the HVCC rules. The upshot is that borrowers who change lenders have to pay for more than one appraisal.
Wiki David Grabiner

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