Mortgage Appraisal Disputes
Why did the underwriter dispute our appraisal?
We’ve been trying to refinance our home for the past 2 months. The mortgage co hired an appraiser and all paperwork was completed. Now we find out that the underwriter does not approve the loan based on the appraisal. Why and how often does this happen? Why would the mortgage company hire an appraiser to perform an appraisal, that ultimately the underwriter would not approve?
It is illegal to appraise for an amount just for a loan. They ahve to do a fair appraisal based on what your house is worth. It sounds like it is not worth the amount of money you want them to give you.
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The above mentioned are the basic requirements in order to qualify for a home loan. Secondly, I was interested to know how big a home loan I could get considering Mortgage Appraisal Disputes. As soon as I knew how much, I could start searching for a house.
Mortgage Appraisal Disputes
Can a pending contract price of a home be disclosed before the sale is final?
I work for a mortgage company in the appraisal department. I was reviewing an appraisal and the appraiser used pending sales and active listings to support the value of the home. This is fine by me, but there was not an adjustment for negotiation (as most of us know, homes often sell for an average of 3-5% less).
Well I got into a dispute with one of the “branch leaders” in another state who claims that pending sale homes have the full contract price disclosed and that is why the appraiser did not adjust. I always thought that it was illegal to prevent a 3rd party from seeing what the price was and going to the seller to offer a bit more… am I wrong here?
I for some reason only have access to yahoo at work so I can’t research on real estate websites… if anyone could help me get this jerk off my back, I’d appreciate it. Even if I’m wrong- I’d just like to know!
Thanks!
I don’t think you are wrong. I haven’t practiced real estate for a few years but I’m almost positive a Realtor is not supposed to disclose a pending purchase price. The deal could fall through and then the seller might not get a better offer because others would know how much he had agreed to before. The only way I can think of that the appraiser found out the contract price would be if he/she called the listing agent and asked. The agent shouldn’t have told but sometimes people don’t realize what they are or are not supposed to tell, especially since an appraiser is somewhat of a colleague. I do remember that houses under contract only show up in the MLS as under contract and the actual selling price doesn’t show up until the deal is closed and the listing is changed to sold. I think you are right and the branch leader doesn’t know what he/she’s talking about.