04-15-2012 10:26 AM
We have a accepted offer on a nice house. but I am freaking out.
We are on our 3rd lender already. Inspection has been done cost us 600.00 only a few big things to fix, seller was asked to fix waiting on reply.
We still haven't gotten an answer on how much we need to bring to closing!!!!!!!!!!!! They keep saying oops we figured it wrong. Last person said they might not be able to tell us until day of closing. how in the world is that supposed to work??????????
They set us to close in 12 DAYs it is A VA loan they still don't have the appraisal scheduled. Everything hinges on the appraisal price. But in our area this week about 25-30 houses went on the market in the subdivision we are buying into, that are short sale and foreclosures listed 30 to 50 thousand less then we offered on our house . What will this do to our Houses worth ?? Does it matter am I going crazy for nothing?
04-15-2012 05:00 PM
Hmmm. Interesting. I am not a realtor, but I was told appraisals are based off 3 sold and 3 listed within a 1 mile area. They also take the year built into question. Hope this helps a little.
04-15-2012 05:33 PM
That is a very god question. I apologize in advance if I ramble in some spots but by the end hopefully I will have explained everything clearly. I am in the exact same situation as yourself.
The only thing holding up the approval/clear to close is the appraisal. My house appraised $3000 over the sales price. My MB and UW had some concerns about this because several houses in the neighborhood have been sold for $40,000 to $50,000 less than the sale price of my house. These homes are short sales and foreclosures as well. What helps mess this up also is since these homes are in a small village, there are really no other comparables to match with the house I'm attempting to buy. So three of the short sale/foreclosure homes (one ranch style which is the same style as mine), another home in a neighboring village and a two story home down the street were used as comps. The two story home is valued approximatly $8000 more than my house and the one in the neighboring village is about $12,000 less than mine and the others as I said are between $40,000 and $50,000 less than my house.
As I said, since this in a small village, there really is nothing to compare it to. The house I am attempting to get has a professionally finished basement and sits on a nice size pond. None of the other homes have these features which even messes things up more so. So because the appraisal did not sit well with the MB and UW, they sent the appraisal to the investor's UW who will either say that the appraisal is acceptable to them or they will come back and say to re evaluate the appraisal which more than likely would result in a lower price which I could then go back to the buyer and say let's re do this deal which I already know will not fly with them and then the sale could be possibly dead or I pay more money down towards the loan to make up the difference.
The turn around for the investor's UW to look at things is 48 hours so by tomorrow since it was sent off Thursday morning, hopefully I will have an answer as to the result. One thing I did forget to mention is that my realtor and MB have been working together and trying to pull as many home sales in a pre determined area from the past two years that would help my cause since the area, as I have said a couple times already, does not have much to compare and to show that the appraisal is a good, valid appraisal. I am very fortunate to have two quality professionals working for me.
I apologize to everyone for rambling on but I wanted to give you as much info as I could. I will say this, the house is one I found and had everything I wanted after searching since December/2011 but if the investor's UW says the appraisal is no good, it will be on to find the next house. There is always another house out there, remember that.
Most importantly, because of the housing issues from 2008 and 2009, they go through this process to protect themselves first and foremost and secondly, you the customer as they don't want you to get in over your head as well.
I am sending many positve thoughts your way that everything will be good with the appraisal. As I said, we are in the same boat. Hopefully we will both be successful in overcoming this hurdle and we will be enjoying our new homes before you know it!
If I have been unclear on anything or you want me to explain anything else in greater detail, please post and I'll respond as soon as I can.
Good luck to us both!!
04-15-2012 05:48 PM
Glad to read that the banks are taking these extra precautions for themselves and the potential buyer. Also, good to hear that they are now sounding like the qualified professionals they claim they are.
04-15-2012 07:09 PM
Thank you all for the info. Thanks for explaining your situation as well. I am going to keep my fingers crossed, since it is completely out of our control. We did here the VA is backed up on Appraisals! But supposedly we still close before the end of the month. Plus side sounds like the sellers are fixing the 4 issues we had with the inspection!!!!!!!!
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO