How long of a wait for a lenderʼs appraisal?

Obtaining a lender’s appraisal is a crucial step in the home buying process, as it determines the value of the property being financed. The timeline for receiving a lender’s appraisal can vary depending on several factors.

The typical wait time for a lender’s appraisal is around 7-10 business days. This timeframe can fluctuate based on the complexity of the property being appraised, the workload of the appraisal company, and the current market conditions.

FAQs about lender’s appraisals

1. Will a higher offer speed up the appraisal process?

While a higher offer may make the appraisal process more urgent, it will not necessarily speed up the timeline for receiving the appraisal report.

2. What happens if the appraisal comes in lower than the offer price?

If the appraisal comes in lower than the offer price, the buyer may need to renegotiate with the seller, bring additional funds to the closing table, or in some cases, the deal may fall through.

3. Can I schedule my own appraisal before the lender’s appraisal?

While you can certainly order your own appraisal before the lender’s appraisal, the lender will still require their own appraisal to be conducted for the loan approval process.

4. What information does the appraiser consider when evaluating a property?

Appraisers consider various factors such as comparable sales in the area, the condition of the property, and any upgrades or renovations that may have been made.

5. Can I request a copy of the appraisal report?

Typically, the buyer has the right to request and receive a copy of the appraisal report from the lender once it has been completed.

6. What if the appraisal deadline is approaching and the report is not yet available?

If the appraisal deadline is nearing and the report is not yet available, it is important to communicate with your lender and real estate agent to discuss possible extensions or alternatives.

7. Can the appraisal process be expedited for a time-sensitive closing?

In some cases, the lender may be able to expedite the appraisal process for a time-sensitive closing, but this is not guaranteed and may incur additional fees.

8. What if the appraised value is significantly lower than expected?

If the appraised value is significantly lower than expected, the buyer may need to come up with a larger down payment or explore other financing options.

9. Does the appraisal impact the loan amount I am approved for?

Yes, the appraisal plays a major role in determining the loan amount you are approved for, as the lender will typically only loan up to a certain percentage of the appraised value.

10. Can I challenge the results of the lender’s appraisal?

While it is possible to challenge the results of the lender’s appraisal if you believe there were errors or omissions, this process can be complex and may not always result in a change to the appraised value.

11. Will the lender always use the same appraisal company?

Lenders may have preferred appraisal companies that they work with regularly, but they are typically required to rotate through a list of approved appraisers to maintain independence and objectivity.

12. What happens if the home appraises for more than the offer price?

If the home appraises for more than the offer price, it can be a positive outcome for the buyer as it validates the value of the property and may lead to a smoother closing process.

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