When buying or refinancing a home, one crucial step in the process is getting an appraisal. This appraisal determines the value of the property and is essential for securing a mortgage loan. One common question that many homebuyers or refinancers have is: How long till closing after appraisal? Let’s delve into this topic and provide some clarity on the matter.
**How long till closing after appraisal?**
The typical timeline for closing after an appraisal is usually around 2-4 weeks. However, this timeframe can vary depending on various factors, such as the lender’s workload, the complexity of the transaction, and any issues that may arise during the appraisal process.
FAQs:
1. Does the appraisal always come before closing?
Yes, the appraisal is typically ordered after the initial loan application is submitted but before closing. It is an important step in the underwriting process to determine the value of the property.
2. Can the closing happen before the appraisal?
In certain situations, such as all-cash transactions or when a buyer waives the appraisal contingency, the closing can happen before the appraisal. However, this is not common in traditional mortgage transactions.
3. What happens if the appraisal comes in lower than the purchase price?
If the appraisal comes in lower than the purchase price, the buyer and seller will need to renegotiate the terms of the sale. This could involve the buyer making up the difference in cash, the seller lowering the price, or a combination of both.
4. How does the appraisal affect the closing timeline?
The appraisal can impact the closing timeline if there are issues with the property’s value or condition. If the appraisal report requires corrections or additional inspections, it can delay the closing process.
5. Can the appraisal be expedited to speed up the closing?
While it is possible to request an expedited appraisal, it is not always guaranteed. Appraisers have strict guidelines to follow, and rushing the process could compromise the accuracy of the valuation.
6. Can the appraisal be waived to accelerate the closing?
In some cases, such as certain types of loans or properties, the appraisal requirement can be waived. However, this is not common practice and usually reserved for low-risk transactions.
7. What if the appraisal is higher than the purchase price?
If the appraisal comes in higher than the purchase price, it can benefit both the buyer and seller. The buyer may have instant equity in the property, while the lender may offer more favorable loan terms.
8. What if the appraisal report is taking longer than expected?
If the appraisal report is taking longer than expected, it is essential to communicate with your lender and real estate agent. They can provide updates on the appraisal process and help navigate any delays.
9. Can I be present during the appraisal?
Typically, the homeowner is not present during the actual appraisal. The appraiser will schedule a time to visit the property and conduct the appraisal independently.
10. Who pays for the appraisal?
The appraisal is typically paid for by the buyer as part of the closing costs. However, in some cases, the seller may opt to cover the cost of the appraisal to sweeten the deal.
11. What if the appraisal value is significantly lower than expected?
If the appraisal value is significantly lower than expected, the buyer may have the option to challenge the appraisal or request a second opinion. This process can delay the closing but is sometimes necessary to ensure a fair valuation.
12. Can I choose my own appraiser?
In most cases, the lender selects the appraiser to ensure an unbiased valuation. However, some loan programs allow borrowers to choose their own appraiser, as long as they meet certain qualifications.