Most mortgage loans on residential homes require an appraisal. An appraiser helps a lender verify the property value independent of anyone that is an interested party to the transaction on a purchase or refinance mortgage loan. For a buyer that is buying a new home an appraisal can also be a good thing to have to make sure they aren’t over paying for a property.
When an appraiser does an appraisal, they are looking at several things that are required by the lending guidelines. Comparable’ s used have to be sold homes preferably in the last 6 months. Listed homes or pending sales are not considered usable comps to establish value. Location, structural improvements, size and amenities are some of the other factors considered.
Appraisal guidelines are dictated by legal requirements as well as the type of loan that is being obtained by the borrower. The appraisers job is to provide an objective, impartial and unbiased assessment of the property’s fair market value.
Most all loan types require Appraisals. There are two types of refinances that you can do with no appraisal most the time. A FHA Streamline refinance and a VA IRRRL. Also, with newer valuation technology Fannie Mae and Freddie Mac do give property appraisal waivers on some properties. This doesn’t happen on all properties, but it can happen when your loan officer obtains the “Findings” from the software Fannie Mae and Freddie Mac use for evaluating a loan file and the need for an appraisal.
If you have any appraisal questions please contact us at 208-501-8851 in the Boise, Meridian, Eagle or any area of Idaho or surrounding states!