Why Lenders Require Appraisers They Approve
Do I have to use an appraiser that the lender approves?
Times have changed since the days when a loan agent could get an appraiser from a phone book or referred from a friend in the mortgage industry. They can no longer use those methods as of a few years ago. Lender’s/Banks now require that the appraiser be in independent party selected from a “Appraisal Farm” were appraisers line up to get appraisal jobs. You see, lenders want to make sure that there is no favor or kickbacks delivered to appraisers’ for the work they conduct. So, lenders hire appraisers from independent companies who offer those service under a “round robin” style format delivering appraisers to do each job to make sure there is no collusion.
Actual state and federal laws have passed which require this method of independent appraisal deliver to do appraisals on homes. So, You will have no choice in getting the appraisal done by one of these independent appraisers.
When you are ready to get your appraisal completed, you will be instructed to pay the fee independently and the appraisal will be ordered by the lender. Once the appraisal is completed, you will be provided a copy of the appraisal. The seller will get a copy of the appraisal, too. If the value does not support the lending guidelines’ for the loan you are trying to qualify, then there are options, something. You will want to contact your loan officer and Realtor to discuss the matter. Most of the time , these issues work themselves out.
Getting an appraisal is the best way to determine the true value of the home. Sometimes, the value may come in less than what you think the home is worth and a 2nd appraisal may be needed. This does not happen too often yet you have the option, if needed.
LendPlus Financial closes thousand of loans yearly and can help you get started in getting your loan approved and an appraisal started. If you have a Realtor you are working with, have them call us to help you get the best deal by providing information regarding your loan.