APPRAISALS ARE GETTING EASIER
Anyone who has been in the business for a while will recall how property appraisals were transformed after the housing collapse. Appraisals used to be much less expensive and service was much faster because a lender depended upon their sources for the reports and there was a desire on behalf of the appraiser to please. In our market we saw the cost of appraisals not quite double but very close to doing so after lenders had to change the appraisal process.
The process of ordering appraisals through appraisal management companies was expensive and left a lot to be desired. It took lenders and AMC's a while to get the wrinkles worked out. A few years down the road we have seen some relief in the form of property waivers where given a certain situation an appraisal may not be necessary thus saving the time and the fee. This can happen particularly in a heaving populated area where a home owner has significant equity. These situations are welcome indeed.
This week one of my lenders announced a process where some loans will qualify for faster cheaper appraisals. This is a case by case situation but I'm excited to see how it rolls out. It can save up to 10 days on turn time if an appraisal is not needed to close the transaction. If an appraisal is needed it will be much cheaper and faster if the transaction qualifies for this process vs a full appraisal.
We are seeing mortgage lending constantly adjust to meet the needs of borrowers. Much of the home buying process is streamlined. I'm happy to see the appraisal piece lighten up so to speak. Delivering a mortgage to a client and doing it as smoothly and as hassle free as possible is something I enjoy. Making appraisals easier, faster and cheaper is a great advancement. It won't work in every situation but where it does it is a game changer.