Appraisals

[StartingOver10]

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@Anonymous wrote:

Hmmm, I'm shocked and wonder if HELOC is the culprit@? The appraisal that includes the HELOC was $45K less @ $550K than the other lenders appraisal which is a straight refi cash out.

That seems like a very big difference to me. They tell me I can dispute this and request a recon but, I've researched that recons even when successful usually don't come close to a $45K increase. PLUS, I can't dispute much in the report with being petty.

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^^^I agree with your suspicion.  From the appraisals I have seen, the cash out refi's are much higher than the HELOC's and closer to actual market value IMO.  This has not been confirmed by any loan officer or appraiser, but to me it seems as if the appraiser is much more conservative with the value on a HELOC.  It could be a coincidence. 

[Anonymous]

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@StartingOver10 wrote:

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@Anonymous wrote:

Hmmm, I'm shocked and wonder if HELOC is the culprit@? The appraisal that includes the HELOC was $45K less @ $550K than the other lenders appraisal which is a straight refi cash out.

That seems like a very big difference to me. They tell me I can dispute this and request a recon but, I've researched that recons even when successful usually don't come close to a $45K increase. PLUS, I can't dispute much in the report with being petty.

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^^^I agree with your suspicion.  From the appraisals I have seen, the cash out refi's are much higher than the HELOC's and closer to actual market value IMO.  This has not been confirmed by any loan officer or appraiser, but to me it seems as if the appraiser is much more conservative with the value on a HELOC.  It could be a coincidence. 

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We felt there are many advantages to the HELOC for our purposes but, I guess it wasn't meant to be. Not the end of the world and the lender ultimately loses out, not us.

[Anonymous]

Hmmm, our LO is suggesting we dispute the appraisal? Will it go back to the same appraiser or a new one? We have a few newer comps showing a higher value than those shown on the appraisal. Is it worth it or is there a downside?

[StartingOver10]

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@Anonymous wrote:

Hmmm, our LO is suggesting we dispute the appraisal? Will it go back to the same appraiser or a new one? We have a few newer comps showing a higher value than those shown on the appraisal. Is it worth it or is there a downside?

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It goes back to the appraiser that did the appraisal.  S/he has to review each 'comp' you supply and describe why the comp was suitable or not suitable for as a comparable sale for your appraisal. 

*Be careful, send only true comps and not those that are larger with more features.  I have found that diputing the appraisal rarely works, but maybe it is different in your area. 

[Anonymous]

2 of the newer comps are identical 3BR, 2 1/2 bath splanches but, one other is 4BR.

Is there a downside to disputing?

[StartingOver10]

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@Anonymous wrote:

2 of the newer comps are identical 3BR, 2 1/2 bath splanches but, one other is 4BR.

Is there a downside to disputing?

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No, no downside.  Where you get push back from appraisers if you don't send true comps.  It sounds like you have good information for the appraiser with them being newer sales (I assume you mean more recent sales) and same floorplan.  Where appraisers get frustrated is when a homeowner or Realtor (anyone really) sends higher sales that are not comparable properties in an area that is not near the subject property.  Doesn't sound like that is the case at all with what you have to supply.

[Anonymous]

Yep, the more recent have identical floor plans, all built at the same time in the '50s, except the 4BR recently added the 4th BR. 

Interestingly, I just received a title commitment/insurance form that shows the full estimated amount including the HELOC BUT, that amount would now exceed the 80% LTV based on the low-ball appraisal.

Now I'm really confused and our LO is away for a childs college graduation

[StartingOver10]

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@Anonymous wrote:

Yep, the more recent have identical floor plans, all built at the same time in the '50s, except the 4BR recently added the 4th BR. 

Interestingly, I just received a title commitment/insurance form that shows the full estimated amount including the HELOC BUT, that amount would now exceed the 80% LTV based on the low-ball appraisal.

Now I'm really confused and our LO is away for a childs college graduation

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The title order was done long before the appraisal was completed so the title co is giving you the amount based on the original order. That will have to be modified to meet the actual loan amounts.  

How far off is the appraisal?  Does this lender have a 90% cash out refi or HELOC available or just the 80%?

[Anonymous]

Appraisal is $45K less. I believe the cap is 80% LTV