What is a Fannie Mae appraisal?
A Fannie Mae appraisal is an evaluation of a property’s value that adheres to specific guidelines set by the Federal National Mortgage Association, commonly known as Fannie Mae. This type of appraisal is typically required when obtaining a mortgage through Fannie Mae or a lender that follows their guidelines.
1. Why is a Fannie Mae appraisal important?
A Fannie Mae appraisal is important because it helps lenders determine the value of a property to ensure they are not lending more money than the property is worth.
2. Who conducts a Fannie Mae appraisal?
A Fannie Mae appraisal is usually conducted by a licensed and certified real estate appraiser who is knowledgeable about Fannie Mae’s guidelines and standards.
3. What factors are considered in a Fannie Mae appraisal?
In a Fannie Mae appraisal, factors such as the property’s location, size, condition, and comparable sales in the area are taken into account to determine its value.
4. How does a Fannie Mae appraisal differ from other appraisals?
A Fannie Mae appraisal differs from other types of appraisals in that it must meet specific criteria set by Fannie Mae, such as using Fannie Mae-approved forms and comparable sales data.
5. Can a borrower request a Fannie Mae appraisal?
Borrowers cannot request a Fannie Mae appraisal directly. The lender or mortgage company is responsible for ordering the appraisal to ensure it complies with Fannie Mae guidelines.
6. How long is a Fannie Mae appraisal valid for?
A Fannie Mae appraisal is typically valid for 120 days from the date it is completed. If the appraisal expires before closing on a loan, a new appraisal may be required.
7. What happens if a Fannie Mae appraisal comes in lower than the purchase price?
If a Fannie Mae appraisal comes in lower than the purchase price, the lender may require the buyer to come up with the difference in cash, negotiate a lower purchase price, or the loan may be denied.
8. Are there any specific requirements for the appraiser in a Fannie Mae appraisal?
Yes, appraisers conducting Fannie Mae appraisals must be unbiased, independent, and have no interest in the property being appraised. They must also comply with Fannie Mae’s guidelines.
9. Can a borrower appeal the results of a Fannie Mae appraisal?
Borrowers can appeal the results of a Fannie Mae appraisal if they believe there were errors in the appraisal process or if they have additional information that would affect the property’s value.
10. Are there any fees associated with a Fannie Mae appraisal?
Yes, borrowers are typically responsible for paying for the cost of the Fannie Mae appraisal as part of the closing costs when obtaining a mortgage.
11. Can a Fannie Mae appraisal be used for other purposes?
A Fannie Mae appraisal is specifically conducted for mortgage lending purposes. It is not typically used for other purposes such as refinancing, property tax assessments, or insurance claims.
12. What happens if a property does not meet Fannie Mae’s appraisal requirements?
If a property does not meet Fannie Mae’s appraisal requirements, the loan application may be denied, or the borrower may be required to make repairs or improvements to the property to meet the standards.