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How long can I expect for the appraisal in MD? Why this process is taking so long?

By
Real Estate Agent with RE/MAX100 632130

How long can I expect for the appraisal? Why this process is taking so long?

This was one of my clients question. He wanted to know why after having the contract ratified the appraisal was taking so long?! So I explained the process to him. I hope his question can help you out as well.

 The lenders normally order the appraisal after the inspections are done (home inspection, mold inspection, etc). Because depending on the inspector's report, things can change in the contract and modifications for repairs can be made as agreed upon, or buyers can walk away from the contract if a mutual agreement cannot be made. If both, buyers and sellers initialed the home inspection box in the MD contract - "Buyers General Right to Terminate Contract". It will save you (the buyer) some money - the appraisal fee - around $400.

 While we are in the inspections time-frame, the lender sends the loan application to the processor who verifies and validates all of the information to be true and correct. This can take two weeks or more. It is usually during this time frame that the appraisal is ordered. The lender processes & contacts the listing agent to schedule the appraisal. It is the listing agent's responsibility to open the house for the appraiser.

When all the information is collected the processor then verifies that basic lender loan requirements have been met. The file is then packaged, and completed, with the appraisal and title report and sent to the underwriter for final approval. Once ALL of these processes are completed, only then the underwriting will start.

 So right now, what is going on?

           * Lender processing is "in work" on your loan application

          * The title company is doing the abstract of title. The Abstract of title is a document reflecting the history of the property you are buying, to ensure that there won't be any problems as far as a clean title chain and to ensure there are no legalities that could arise once you take ownership. They will verify location of the property, identify the current (seller) legal owner of the property, history of conveyances and encumbrances that limits the title, property taxes unpaid... all this to make sure that sellers can transfer the title to you.

          * Listing agent will schedule the septic test and the termite inspection (VA requirement) and send me the report;

          * Buyer's agent will order the survey, to keep things moving forward.

 Please understand that there are unique situations and variables that will affect your specific home purchase.  Many differences in each contract of sale, depending on what your agent negotiated on your behalf. If you are buying a home right now and have questions about the process, contact your agent. He/She is the best person to walk you through this important process. If you don't have an Agent and you are thinking on taking this big step, please feel free to contact me. I will be more than happy to walk you through the process. Thank you.

 

Comments (2)

Kate Reilly Lund
RE/MAX Diamond, Realtors - Edison, NJ

Things are done differently everywhere. In NJ the Lending institution orders the Appraisal which is then paid for by the Buyer.

It is not ususally something you have to wait to long for. However, you don't always like what you hear.

Katie the Real Estate Lady

Feb 13, 2011 02:25 PM
Nor Yeretsian
Envoy Capitol Realty Inc. - Toronto, ON
Envoy Capitol Realty Inc., Brokerage Toronto

Good post, keep it moving forward...

cheers

Nor Yeretsian

Feb 13, 2011 02:27 PM