What happens during the appraisal?
The primary purpose of the appraisal is to determine the value of a property using similar properties called "comparables."
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Do you hear that? It’s angels singing.
Remember back at the start of the plague times when we were allowed to get desktop or exterior-only appraisals? Last fall, I told you we were going to see similar guidelines implemented permanently – or as permanent as anything is in the mortgage industry – this year. And now we have dates!
Both Fannie Mae and Freddie Mac will begin allowing desktop appraisals in March. Freddie is updating their underwriting system on March 6 and Fannie will follow on March 19.
A desktop appraisal is one where the appraiser doesn’t have to physically inspect the property. He can use data provided by the REALTORs or the homeowner. He may have data in his own files about the property. He will also consult public records, the MLS, and any other secret squirrel data sources that appraisers use.
And that’s all we know right now. I suspect that Fannie and Freddie will place certain parameters around which types of transactions are eligible.
The bottom line, we should start seeing some relief toward the end of March in terms of appraisal wait times. This has got to make the process faster and easier!
As soon as I know more, I will let you know. So make sure you’re on my eNewsletter list. You can sign up on my web site.
My name is Emily Caryl Ingram. I lead a team of Mortgage Loan Specialists at New American Funding in Port Townsend, WA.
