The new strict lender … be prepared for stringent appraisal proceedings!
If you are expecting a seamless and quick appraisal process, there is news for you. Mortgage lenders are more cautious now and they intend to be precisely sure about the findings of the appraisal reports. The seriousness is evident from the fact that increasing number of lenders are now opting for repeat appraisals and are also contacting multiple appraisal agencies so that they can be sure of the outcome. The process thus continues for quite a few days or even weeks and entails higher costs.
But why is lender opting for this rather elongated route? Well, instances of fraud, deceptive reports and most importantly flawed appraisal reports have led to this phenomenon. It has been noted that many agencies simply follow the computerized system to generate the appraisal report. This report is quicker and cheaper, but it misses out on a number of pertinent subjective facts. This robotic appraisal technique, as followed by a number of appraisal companies in New York, gravely tainted the entire assessment process. For a while, it managed to grasp attention of all, but with time, the truth of these incomplete reports has surfaced up.
As a result, mortgage lenders, who burnt their hands in previous deals, are now all set to play as safe as possible. They are thus not just getting personally involved in assessing the readings but are also investing time and money in hiring a parallel appraisal agency. From a buyer’s perspective, though this appraisal schema is kind of complicated, but on the brighter side, dishonest competition is by-default weeded out. Only those who can genuinely afford, bid and the ones faking it, are eliminated.