In light of the pandemic, they might also inquire about your health and any recent international travel. The appraiser will set up a time to visit and will ask some general questions about your home. “I’d say 90% of the lenders we work with still ask for a full inspection, including the interior,” says Kelly Kellogg, a senior residential appraiser at Appraisal Experts in Winter Park, Florida. However, experts note that these temporary adjustments aren’t industry-wide … yet. To keep appraisers and homeowners safe during the COVID-19 crisis, pros that regulate appraisal practices are reviewing appraisal requirements and making temporary adjustments to limit the need for appraisers to go inside homes they’re evaluating.įannie Mae and Freddie Mac, for example, are accepting appraisals with either an exterior-only inspection (which some folks are referring to as a “drive-by” appraisal) or a remote desktop inspection for some transactions when interior access is not available.Ī desktop appraisal is when an appraiser collects information on similar homes in the area to closely estimate a home’s market value. Yep, that means that typically, appraisers need to go inside. Appraisers use industry-specific valuation software, and drive by the home and nearby comparable homes (known as “comps”) and take measurements and photos of the home’s interior. Most real estate transactions require a full residential appraisal. The lender will contact the appraiser and order the type of appraisal they need. Lenders typically have a list of approved appraisers they use. There are numerous options to help you avoid foreclosure – which we explain in our post on loss mitigation. (And remember, if you start to struggle with making your payments, be sure to talk to your lender. It’s an assurance that they won’t be left high and dry if an emergency happens, like a sudden loss of income. The market value is important information to a lender because it lets them know whether they could sell their home for enough money to recoup their loss if the loan goes into default and foreclosure. An appraisal is an unbiased, professional opinion of the home’s market value – or in other words, how much a buyer would pay for the home in the current market. The word “praise” is in there so this must be a good thing, right? It can be. If you’re borrowing money to buy a home or to refinance your mortgage, your lender will likely require an appraisal. This installment is part of an ongoing series about the challenges buyers face during COVID-19 and how the homebuying process is adapting to meet their needs.
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