The Appraisal
Getting an appraisal when you obtain a mortgage
When you refinance the mortgage on your home most, if not all the time, lenders require an appraisal. When you obtain a second mortgage, lenders are less likely to ask for an appraisal however it is still common. An important thing to understand about the appraisal process is never ever agree to do an appraisal with a lender that you're not 100% sure you're moving forward with.
California Home Loan Informaton:
Top Ten Mistakes: If you're like most people, buying a home is the biggest investment you'll ever make. Annual mortgage, taxes and insurance costs can range from 25% to 40% of your gross annual income. By reading the information on this page, you're on your way to protecting yourself, and making the home-buying process easier by becoming an informed consumer. Read, talk to family, friends and real estate professionals. You'll be glad you took the time to understand the process.
12 Things You Never Knew About Your Credit: Below is an article about credit scores and how they are affected. The reason I'm posting this article (By Julie E. Sturgeon • Bankrate.com) is because it does a great job explaining the truth about your credit score. The biggest misunderstanding out there today is how inquiries affect your credit score (see item #5). Enjoy the article and if you have any questions about your own credit, please do not hesitate to ask me or visit www.myfico.com (the best source for information about your credit score).
A sales trick some loan officers use is to try and get you to do an appraisal before you fully understand the loan your about to take on. They say things like: “Well, let’s just get the appraisal going because you going to have to get one done anyway right?” And before you even know the rate and terms of the loan your spending $350 or more for appraisal that’s being done for a loan you do not know anything about.
Most people think since they paid for the appraisal they own the rights to it, so everything should be fine. And that is not the case. If for example mortgage company “A” sends out an appraiser and you pay for it, the only company that can use that appraisal is company “A”. No other lender can nor will they use that appraisal if it has company “A” listed as the mortgage company. Now let’s say you want to work with company “B” and need that appraisal. The appraiser can change the name of the mortgage company but he needs permission from company “A” and good luck getting that done. It’s not fair but it’s the way it’s set up in the state of California. Also, even if you can get the name changed, the appraiser usually charges a fee for it.
So if you want to protect yourself, don’t have an appraisal done until you know everything about the mortgage you're obtaining. Ask questions and when you're ready to move forward then do the appraisal.
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