How exactly does this process work? I was "pre-approved" and have submitted all documetation (well so far of what they have asked). I wrote a check yesterday for the appraisal. Would the mortgage company allow an appraisal to be ordered if they felt this would fall apart in underwriting? I was hoping I could assume that if they wanted to order the appraisal they felt good about the loan. I can't get a yes or no answer out of them at this point.
Yes, I am anxious and extremely worried. My kids are estastic about this house and my husband is almost giddy. If this has any chance to not come to frutition, I would like to start talking about the possibility of this not happening to all of them.
I guess I thought this process was more cut and dry than it really has been.
I don't think you can look at an appraisal being ordered as a notion that the loan is heading in the right direction. You are paying for the appraisal, so they aren't out anything to have it done, and it lets them know the "true" value of the home.
Toolie....I don't have any advice but want you to know I'm in the same position as you. Appraisal going on right this minute & I still don't know that I'm approved for sure.
Holly1221, it sucks huh? I feel your pain and hope it works out good for you!
I know the appraisal could come back bad, but I was thinking credit/income wise I should be okay if they are willing to order an appraisal.
They just want to make sure the value is on par in relation to the loan. Our lender dragged their feet in ordering the appraisal and the final docs were submitted after the expected closing date, so that got delayed by a week or so. On top of that, they were extremely picky on every detail, including comps. They even rejected the first round of the appraisal because they felt the cubic footage of the pool was incorrect. There was no way...it was winter time, there was snow on it, along with a pool cover. They even had the appraiser recalculate the price on the koi pond. It's just a big piece of plastic with rocks around it. Our real estate agent said she never ever had seen a lender act this way towards an appraisal.
While we did sweat it out, we were even more confident that the appraisal would be very accurate. We also kept tabs on the tax info on all of the homes in the area, with a like model to ours, including sale prices and we knew the appraisal would be good to go if done accurately.
The appraisal is the bank's process to ensure that they are loaning money against an asset with a value at least equal to the loan amount; this process is necessary but unrelated to loan approval, which is how the bank confirms that you are indeed a qualified borrower.
I'm sure that it will all come together for you, home buying can be a nerve-wracking, hurry up and wait process.
Hang in there !!
Thank you for all the responses. I understand the process of the appraisal and why the appraisal is done. My question was more toward the credit/income worthiness of my loan being okay and that is why the appraisal is ordered. I was kinda thinking of it as a step process, you apply, are determined credit worthy, appraisal is done, appraisal is okay, closing can take place.
My question is really, will the mortgage company go ahead and order the appraisal, ask you to pay for it, if they don't feel the loan will make it through the UWing process on the credit worthiness of your loan?
I understand the appraisal can shake up the process, I am ready for that heartbreak if necessary. What I am looking for is assurance that my credit and income have been deemed good enough for the loan based on an okay appraisal.
Yeah, I know I am anxious, this process is a hard one to go through!
To answer you question ordering an appraisal does not mean the loan will close, just look at as a step in the process. I answer this from direct experiance I paid for an appraisal 2 months ago and still haven't closed and at this point not sure I am. Not trying to be a downer but giving you my experience. Good Luck and I am sure your loan will work out perfectly!