Are you wondering why it takes so darn long to get an appraisal report completed lately? This information will give you the secret tools needed to punt kick the process into high efficiency gear!
New lending laws have put a cog in the wheels in Real Estate Land. Back in the good ole' days, as soon as a contract was consummated, the loan officer would order an appraisal.
No can do anymore! The loan officer must now obtain the borrowers approval of a good faith estimate prior to ordering an appraisal. So what does this have to do with you?
Before the loan officer can obtain the numbers for the good faith estimate (GFE), they need the escrow officer to create an estimated HUD1 or settlement statement showing all the credits and debits for the buyer . This includes escrow, title and loan fees, commissions, costs for inspections and home warranties paid through escrow.
Before the escrow officer can prepare the estimated HUD1, she needs commission demands and terms (who pays for what and how much) from the real estate agent!
If you are located in a state or area where it's customary for you to deliver demand and terms at the end of the escrow or pending sale period, you will be waiting a LONG time for an appraisal report to be ordered and completed.
If you are located in an area where it's customary for the escrow officer to pull the information off the contract directly, be sure you are providing her with costs ASAP IF know what they will be.
CHANGE YOUR SYSTEMS! My company has a new rule to submit agent demand and terms to the escrow officer within 48 hours of opening escrow.
Now you have provided the tools the escrow officer needs to prepare the estimated HUD1 so the loan officer can deliver his GFE and then order the appraisal in a timely manner.
Who knew we work in such a tangled environment?!