TEN APPRAISAL EFFICIENCY TIPS FOR A LENDER
5 QUESTIONS YOU SHOULD ASK THE BORROWER
- Is the property unique, for example: Is the home over 3,000 square feet? Is the design of the home unique, such as a log home, alpine villa, ultra modern ? Does the property include more than 5 acres. It is better to know this in advance so that if the assignment is more complex, you know to collect more in advance. If the fee is not reasonable, appraisers will reject the assignment, thus causing more time delays.
- Is the property in Leon County? Assignments which are not in Leon County will cost more due to time and complexity.
- Do you have any vacations planned that could delay the appraiser’s inspection?
- What is the best way to contact you: via phone, email, text?
- Is there a security gate, guard dogs or other obstacles to entry the appraiser should be aware of?
5 TIPS FOR THE LOAN OFFICER
- Let the borrower know that the appraiser will be taking interior and exterior photos. That we will need to access every room, the attic and the crawl space. We will also need to inspect and measure all buildings. If there are any unfinished projects, finish them before the appraiser gets there. All ladders and construction debris should be removed in advance.
- Many contracts include a contract/counter offer addendum, which may show changes to the contract price, closing costs allowance, etc. Occasionally, the contract/counter offer addendum is not included when we get the order. This can cause major issues, make sure that we know about all addendums to the contract.
- Do you have a survey in hand? If we don’t have a survey, we may need to make the appraisal “subject to” our review of a survey. We do not always need a survey, but having this in advance can be a big help.
- Is this an FHA loan? If so, make sure we know this in advance. FHA requirements are more detailed, the inspection is more involved, and an FHA appraisal will cost more.
- Often, a contract will have two names on it, but only one of those names is the borrower. Some order forms will only list one borrower and not the other. If we know in advance how many borrowers are on the loan, it will save everyone time not having to make corrections later.