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If appraisal is ordered, should I feel okay about the other requirements?

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Frequent Contributor

If appraisal is ordered, should I feel okay about the other requirements?

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.

Message 1 of 16
15 REPLIES 15
Established Contributor

Re: If appraisal is ordered, should I feel okay about the other requirements?

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.


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Message 2 of 16
Regular Contributor

Re: If appraisal is ordered, should I feel okay about the other requirements?

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. 

12/27/11: EQ 618 / TU 621 / EX 643 (lender pull for CLOSING!)
MYFICO: EQ 618 / TU 610 on 12-07-11
MyFico EQ: 603 on 12-01-11
Current: 594 EQ/ 616 EX/ 599 TU (lender pulls 11-28-11)
Previous: 555 EQ/ 552 EX/ 573 TU (lender pulls 10-28-11)
GOAL: NEW HOUSE ...GOT IT ON 01/27/12
2012 GOAL: 750
Message 3 of 16
Frequent Contributor

Re: If appraisal is ordered, should I feel okay about the other requirements?

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.

Message 4 of 16
Moderator Emeritus

Re: If appraisal is ordered, should I feel okay about the other requirements?

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.

Message 5 of 16
Super Contributor

Re: If appraisal is ordered, should I feel okay about the other requirements?

 

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 !!

 

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 6 of 16
Valued Member

Re: If appraisal is ordered, should I feel okay about the other requirements?

Home buying can be extremely frustrating and scary, especially when you're emotionally invested in the prospective house ( it's usually difficult not to be, after all you want to live there with your family). An appraisal is the bank insuring the value of their loaning you money; in in other words, trying to insure that they will make profit off your loan. Depending on your loan status, down payment, type of loan etc the appraisal could change some conditions of the loan. If the value is not sufficient for the bank in terms of how much you want to borrow then you may need more money down, or a lower purchasing price. The appraisal may also hint at issues that you'll get more info on with an inspection but for certain loans some moderate to major repairs can mean a no go. Best advice its cross your fingers and talk to your family about there possibility of not getting the house. Better to be realistic and get a wonderful surprise then to be heartbroken because you thought it was a sure thing. Mortgages and home buying are so precarious in this market it's best to be hopeful but not count those chickens before they hatch.
Message 7 of 16
Frequent Contributor

Re: If appraisal is ordered, should I feel okay about the other requirements?

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!

Message 8 of 16
Valued Member

Re: If appraisal is ordered, should I feel okay about the other requirements?

Usually they have checked comps and order an appraisal because they think they will be doing the loan and just want to check value. But, there are tiers of approval for credit etc and you can ask where you stand. Your lo should be able to tell you. Otherwise, provided that all your info is correct and has been checked, yes, you should be OK.
Message 9 of 16
Valued Member

Re: If appraisal is ordered, should I feel okay about the other requirements?

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!

Message 10 of 16
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