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Hi Everyone,
I received an email from my mortgage broke today saying that Chase USDA is requesting a field review after receiving the results of the appraisal. The home was sold in an estate sale in March of this year for $113K. We're set to close on this property on 10/30 for $192,500 (original asking price was $189,900, but we offered more, because they are paying all closing costs allowable (approx $10K). This wasn't out first offer obviously. Well, the appraisal came in at $193K, only $500 above sales price. My question is, has anyone had experience with a field review? If so, how did it turn out? I've anticipated a lot of things, but this is something that I definitely didn't see coming. Thanks for any feedback!
they sometimes come back fine.... but i see value get cut a lot too
@DallasLoanGuy wrote:they sometimes come back fine.... but i see value get cut a lot too
That's what worries me though. How much are they really willing to drop if the value gets cut? The listing price was $189,900, but we're paying $193K so that they pay almost all closing costs. With the $10K closing costs that they're throwing in, they look at it as getting $183K for the house. If the lowered value comes in anywhere close to that, I would bet that there will be a better chance than not that they'll put it back on the market at the lowered price and try to sell to someone that isn't asking for closing costs. The good thing is that the lender (Chase USDA) is letting my mortgage guy set up the field review (I believe that this is normally done by underwriting), so that bodes well for us.
I anticipated everything and anything that could have gone wrong with the loan from our standpoint (credit, jobs, taxes, whatever), but never game much consideration to the house itself messing up the loan. I can't help feeling that this isn't going to end well!
@ShanetheMortgageMan wrote:
It all depends on the strength of the appraisal. If the appraiser has overlooked better comps, prepare to have a value change, but if they've done the job properly then the value should be supported by the field review. All you can really do is make sure that YOU are well qualified, then it is up to the home being able to pass lender requirements as well, and to find that out money almost always have to be spend... just one of those risks with buying a home. Hope it comes back fine for you.
Thanks Shane. Is this more commonplace now days? If so, how common? I think that the red flag was raised when they had to go outside the normal area for comps on the appraisal.
I don't know if that's what happened to me but I had an appraisal done on the home I'm buying and it came back $5,500 over purchase price. I thought I was set. Then later my LO called saying that they wouldn't approve the loan at that amount only for a lesser amount. I had to come up with almost $10,000!
I asked my LO what happened and he said that's all USDA said they would lend on that house.
I have a friend who knows a LO who said USDA is only loaning out certain amounts in areas and the more you make the less they'll loan you!
?? Don't know what is true?? but this has been my homebuying experience.
@gmhm1099 wrote:Hi Everyone,
I received an email from my mortgage broke today saying that Chase USDA is requesting a field review after receiving the results of the appraisal. The home was sold in an estate sale in March of this year for $113K. We're set to close on this property on 10/30 for $192,500 (original asking price was $189,900, but we offered more, because they are paying all closing costs allowable (approx $10K). This wasn't out first offer obviously. Well, the appraisal came in at $193K, only $500 above sales price. My question is, has anyone had experience with a field review? If so, how did it turn out? I've anticipated a lot of things, but this is something that I definitely didn't see coming. Thanks for any feedback!
This is what may have triggered the review. They may be wondering what raised the value so much in such a short time. From $113 to $193 in such a short time may be a red flag to them.
Our lender just ordered a field review for our home purchase loan. It's costing us an additional $480 for the review plust $638 to extend the loan time for 2 weeks. There is no way we can come up with the additional $10,000 which will be needed if the house does not appraise, in order to close. I am trying to get myself into a state of mind to let the house go because I think that's where we are headed. Buying a house now with average credit, student loan debt on two salaries in this economy has been a total nightmare for three months so far.