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appraisal

Contributor

appraisal

Hi everyone.
Is it the norm for the lender to choose who does the appraisal?
7 REPLIES
New Contributor

Re: appraisal

It is normal for the lender to choose the company  that does the appraisal.  If you think the numbers came back incorrect you could order a appraisal yourself but it would be at your expense.

Contributor

Re: appraisal

Thank you. The borrower usually pays for the first appraisal also? Shoot while I'm at it... Is there anything I should look out for in general? For instance we signed the first set.of papers that had estimates for most everything. Our lender said that once we were officially approved that all that would be fixed and put into a contract. It's a whole lotta scary. Smiley Happy
Valued Contributor

Re: appraisal


RashShakur wrote:

It is normal for the lender to choose the company  that does the appraisal.  If you think the numbers came back incorrect you could order a appraisal yourself but it would be at your expense.


An appraisal ordered and paid for by the buyer would not be workable for the lender. You could use it for informational purposes, but there has to be an independent appraisal ordered by the lender. Also, the amount listed for the appraisal cost doesn't always go to the appraiser. I've seen the cost listed at $600, for example, when the appraiser is actually getting $400. It's a way that some lenders pad fees.

Valued Contributor

Re: appraisal


leppy2 wrote:
Thank you. The borrower usually pays for the first appraisal also? Shoot while I'm at it... Is there anything I should look out for in general? For instance we signed the first set.of papers that had estimates for most everything. Our lender said that once we were officially approved that all that would be fixed and put into a contract. It's a whole lotta scary. Smiley Happy

Yes, you pay for it....but the lender orders it.

Contributor

Re: appraisal

Thanks guys!
Regular Contributor

Re: appraisal


Jazzzy wrote:
I've seen the cost listed at $600, for example, when the appraiser is actually getting $400. It's a way that some lenders pad fees.

Going through my first refinance now, I was informed that the Good Faith Estimate often quotes high prices for services, becuase if the lender underquotes by more than 10% they have to pay the difference. Having said that, if the lender pays less than the quoted amount for the services (let's say appraisal in this instance) will they still charge the consumer the additional money quoted, or will they only charge what they have paid out for those services? It seems like they would only be allowed to charge what they've paid out.

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Contributor

Re: appraisal

My LO said her quote was an estimate. I provided her my credit card info along with a release form that she sent directly to appraiser. He would bill me directly.