Lenders making it even harder than it needs to be to get loans

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San Francisco Chronicle


Real estate chaos hits appraisal industry.


As a result of the current market and a return to proper underwriting guidelines, appraisers are finding it increasingly difficult to get lenders to accept appraisals. Some lenders even are declining low appraisals and

scrutinizing loan applications more carefully than in previous real estate cycles. Whereas most lenders used to evaluate a home appraisal’s credibility based on comparisons generated from their desk, now some banks are

requesting that appraisals be verified by on-site visits to the property, as well as the nearby homes listed as





• Since real estate markets are local and prices can greatly fluctuate from one area to the next, experts recommend that sellers and REALTORS® work with local appraisers that have knowledge of the region.


• Similar to utilizing a REALTOR® versus a sales agent, it is recommended that sellers work with an appraiser that is a member of the Appraisal Institute or the American Society of Appraisers, the appraisal industry’s two largest trade groups. Appraisers that are members of these organizations are required to complete more coursework than those just licensed by the state.


• Because some lenders are declining appraisals, some mortgage brokers recommend that buyers leave their financing contingencies in place until the lender has signed off on the appraisal.


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