Mortgage Appraisal Not Required?
I got a call from the mortgage lender to let me know that my loan didn't need an appraisal for approval.
Huh? I never heard of this. Apparently Fannie Mae has this option to waive an appraisal when you get a loan. They have a computer system that they run your purchase price, the property being purchased and supposedly your creditworthiness to determine what the risk is of the property not being worth what your buying it for.
The idea is they are cutting out more costs from the loan process. Instead of a $250-$350 appraisal it could now only cost $50 for an appraisal waiver.
I like the idea. Any options to drive down costs is a good thing by giving more flexibility to borrowers.
However, I am still going to get an appraisal. The appraisal will cost $300 so it will be a $250 opportunity cost ($300 [appraisal] - $50 [waiver] = $250 net cost) to get assurance that the property is really worth what I'm paying. Ofcourse I'm still leary because appraisals seem to always magically meet the agreed to price.
The lender instructed me to pick out my own appraiser if I decide to get an appraisal. I have always felt that appraisers picked by lenders often rubber stamp appraisals and I'll use this as an opportunity to try to find someone who I hope would be a more unbiased appraiser. I am going to use this petition signed by appraisers concerning pressure from lenders to conform to predetermined values as a starting point.
If I ever refinance I think I would always take the waiver since I already own the property.
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