topic Re: Where I am... in Mortgage Loans

Where I am...

Anonymous — Wed, 30 Sep 2009 19:49:27 GMT

Okay, I have made it really far. My score in January was only 562. I paid down balances and made it to 623!! Then my income was tight, but I got word yesterday they were able to pre-aprove me for the loan!!!!

Now, I only worry about the appraisal. The estimators are shoowing my value at around $125,000....(I haev added a 300 SQ FT Bedroom )we need it to come to $137,000 for my dad to gift me the equity for my down payment. The LO called around and said he found a guy here close to me that thinks he can hit it. He is coming next week and I am so worried. I will throw away $450.00 if it does not come out.

They locked me in at 5.375 today and I signed all the papers. I sure hope nothing goes wrong now.

Re: Where I am...

ShanetheMortgageMan — Thu, 01 Oct 2009 09:09:32 GMT

Congrats on the score improvement.

Not sure what to say about the LO and how they chose the appraiser, other than it's an example of why the Home Valuation Code of Conduct is in place.

Re: Where I am...

Anonymous — Thu, 01 Oct 2009 11:02:52 GMT

I think the guy said he thinks he can hit the mark, because I have added the huge bedroom and updated electrical. Also, the house right next door to me shows over $10,000 more than mine, yet same floor plan and really not as nice. I just hope it works, because I have paid this mortgage(to my Dad) for many years, and it is time for it to be mine.

Re: Where I am...

ShanetheMortgageMan — Thu, 01 Oct 2009 15:57:33 GMT

Well I'm glad you'll be able to get what you need to do accomplished, and I guess I was judging that the LO was calling around and "dangling" the appraisal order/fee in front of the appraiser like a carrot to see who would be promising they can "hit the value". But your LO might have just been trying to find an appraiser who is able to see the big picture, and could've stumbled across a few appraisers at first who weren't familiar with the area or neighborhood. When I choose an appraiser I go to https://entp.hud.gov/idapp/html/apprlook.cfm (as only FHA & USDA, and non-conforming loan programs can allow appraisers to still be selected by loan officers), I punch in the prooerty's zip code to narrow it down to appraisers in the area, I call them up and drill them about how familiar they are with the subject property neighborhood, let them know the home in question and if they seem to really know the area, I then compare their fee & turn time and use all of that to determine who the appraisal will be ordered from. We don't talk about value because the real estate agent has already reviewed comps to determine that the sales price should be supported by recent (3-6 months) & close (within .5 miles) comps.

Re: Where I am...

Anonymous — Thu, 01 Oct 2009 17:14:02 GMT

Yea, wel there is no agent anyway....I am buying from my Dad.

Re: Where I am...

ShanetheMortgageMan — Thu, 01 Oct 2009 18:23:38 GMT

Did dad use a real estate agent when he bought the home? Have any friends who are real estate agents? On refinance transactions where I am unable to get good comparable home data on the subject property, I seek out the real estate agent who helped them buy the home, or if they/I know of any real estate agents in their area who have access to the MLS, that is usually a good starting point to gather information on the comparables in the area.

Re: Where I am...

Anonymous — Thu, 01 Oct 2009 19:06:33 GMT

No, he bought from my previous landlord, no agent. This guy has been around a while and if he said he can hit the mark, I guess he has an idea already.

Re: Where I am...

kai_1103 — Fri, 02 Oct 2009 15:28:02 GMT

Just have to say- I'm glad to hear you choose appraisers for the right reasons. We need more like you, Shane!

Re: Where I am...

Anonymous — Fri, 02 Oct 2009 16:22:55 GMT

What would be wrong reasons? Don't most od it for the "right" reasons"?

Re: Where I am...

kai_1103 — Fri, 02 Oct 2009 17:17:09 GMT

If you choose an appraiser because he agrees to give you a certain value. Not only is it immoral and unethical, but I believe it is against USPAP standards appraisers must abide by. Its the kind of thing they take your appraisal license over, yet it is commonplace.

You are supposed to buy an appraisal, not a value.

That's the wrong reason.

The right reason is like Shane said, search for someone very knowledgeable that understands the neighborhood and can report an accurate value. As Shane said, numbers should never enter the discussion. You shouldn't just open a phone book and point- you may end up with a new guy/gal with no clue about your neighborhood, and could inaccurately report a value.

Message Edited by kelaykay on 10-02-2009 10:17 AM

Re: Where I am...

Anonymous — Fri, 02 Oct 2009 18:39:24 GMT

I have never heard of anyone doing that and I hope you are not insinuating that my LO did that, because he did not.

Re: Where I am...

kai_1103 — Fri, 02 Oct 2009 19:01:49 GMT

Unfortunately its all too common, but don't get me wrong, there are far more good guys than bad. At least I like to think so. A couple years ago a local TV station (Tampa) did an undercover story on it, exposing the phone calls and discussions. It was crazy!! One person says, "I need it to appraise at 300 even though its only worth 200, then I can do a cash out refi and go on vacation, can you do that?" and the appraiser says, "Sure for an extra $100 I can do that". That's what I mean, and yes it happens. Now adays they are so desperate for work, a shady appraiser wouldn't charge extra, they would just be happy to get the work. Of course plenty of appraisers don't do that. Most are great, honest people that do what they can to help you while being honest and ethical. I am trying to buy a house where they own around 300, yet it never was worth more than $225. But with an appraisal that said 300, they were able to cash it out.

But there was no insinuation. I would just repeat what Shane said- shopping for a knowledgable person is great- shopping for a value is bad. I hear so much about shady appraisals, its nice that Shane is doing the right thing and I just wanted to give him a pat on the back! lol

Re: Where I am...

Anonymous — Fri, 02 Oct 2009 19:21:30 GMT

I see. I am hoping mine hits &137,000 just so I can buy it and my Dad can pay his loan out that he has on it. I guess I will find out soon.

Re: Where I am...

kai_1103 — Fri, 02 Oct 2009 19:22:27 GMT

Well I sure hope it works out for you!