What is an appraisal waiver? Which homes get the appraisal waiver? The complexity of appraisal waiver includes a number of criteria and not all inclusive for this article. For the purpose of brevity and simplicity, the below contains a general overview of the process. In most cases, buying or refinancing a home requires an appraisal. The appraisal protects you and the lender from paying or financing a home for more than it is worth. The appraisal generally takes place once your application is filled, and initial documentation is reviewed. Most appraisals are valid for 120 days. The appraisal must be valid through your closing date. If your appraisal expires before your loan closes, then an updated appraisal may be required. The general cost of an appraisal varies based on the type and location of the subject property. The cost ranges between $200 to $600. However, in some cases, it may exceed that range.
An appraisal waiver offers to waive the appraisal for eligible transactions. The offers are issued through Desktop Underwriter (DU) using Fannie Mae’s database or Loan Product Advisor (Loan Prospector) using Freddie Mac. The below list provides an overview of the requirements.
The complexity of appraisal waiver includes a number of criteria and not all inclusive for this article.
Keep in mind that a borrower always has a choice of requesting an appraisal. However, there is a cost associated with the request. Every case is different. Thus, it is best to make this determination case by case basis.