Should You Waive the Appraisal Contingency? Pros and Cons Explained
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- Опубліковано 12 чер 2024
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Timestamps:
0:00 Introduction
0:01 What is an Appraisal Contingency?
0:15 When to Consider Waiving an Appraisal Contingency
0:51 Risks of Waiving Appraisal Contingencies in Non-Competitive Markets
1:17 Understanding the Impact on Loan Terms
1:47 Example: Appraisal Comes in Lower than Purchase Price
2:04 How Lenders Handle Low Appraisals
2:47 When Waiving an Appraisal Makes Sense
3:36 Importance of Comparable Sales
4:00 Risks of Trusting the Listing Price
5:06 Real Estate Agent Ethics and Listing Prices
5:35 Steps to Take Before Waiving an Appraisal
6:10 Evaluating Your Financial Position
6:38 Conclusion: Know Your Paying Threshold
6:54 Closing Remarks
7:01 Questions? Call 707-478-0637 or Book the Calendar
Licensing info: Jennifer Beeston, SVP Mortgage Lending NMLS 247743 at Guaranteed Rate, Inc. NMLS 2611 Branch Address: 1750 N University Drive, Coral Springs, Florida, 33071 Equal Housing Lender
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If you get to where I talk about fictitious seller Bob, drop BOB in the comments 😂😂 D.A.R.E
D.A.R.E. is such a historic thing now. I love the reference!
Beezos / Bayzos -- tomaytoes / tomahtoes.
Appraisals seemed to dominate in the past more than they do today.
Don’t be Bob😂🤣 okay!
great content thanks
Happy to help!
I'm now also concerned about Bob and his crack addiction. Bwahahaha!!
😂😂D.A.R.E ;)
I still have the T-shirt.@@JenniferBeeston
Quite frankly, I am confused. I am buying a home. I offered and was accepted the asking price, and was happy to do so since other offers were lower and were rejected. My realtor, in assessing the accuracy and fairness of the price, said it is consistent with similar such property sales in the area. And so I was informed later by my realtor, during the latter part of the approval process, that the LENDER waived the appraisal. I admittedly was under the impression that such waiver was at he lender's prerogative, not of the buyer. I had considered it a plus to forego having to pay the money for an appraisal, having assumed the costs of inspections and a survey. And so my question is, am I being ignorant about this matter?
I think it is always a good idea to be speaking with the lender directly. For instance, when we get an appraisal waiver, we always have a conversation with the buyer about “hey we have an appraisal waiver but do you still want an appraisal”.
Thank you for this video! I've googled about this topic but I don't quite understand. :) For example, imagine an initial offer where the buyer is using a conventional loan and putting 50% down on a 400K house, so the loan amount is 200K. Then the appraisal comes back at 380K, and the buyer is OK with the offer as is. Will the lender be expected to change the terms of the deal because the LTV, while still low, has changed?
As long as the buyer qualifies with a higher LTV, it would be fine. Realistically with 50% down I can’t think of anything that would cause a problem in that situation.
BOB 😂 Serious question, is there an efficient way for a home buyer to pull comps themselves? With all the wild west agreements with agents, I'd like to do as much research on my own as possible before putting my trust in an agent (I'm in Florida, the trust issues are real 😂). Thank you!
I feel you. I like Zillow and going on the map where I am looking at a house and looking at what has sold. Pay close attention to what has recently sold within last 6 months
@@JenniferBeeston Thank you! Listening to agents, you'd think Zillow was the devil! Also, request for a vid on LTVs would be amazing, it's one of the only things I'm getting stuck on trying to understand if/how I qualify! You're the Beest/Best 🫶
I love Zillow for data but would not ever let it match me with a realtor or lender. Will do a video on LTV
Is it such a thing that an appraisal can be higher than what it should be or is that literally illegal to do?
Yes, sometimes appraisals come in high, but it’s very rare
@JenniferBeeston thanks for the response! Got a new build and should be getting appraised soon and curious what it'll come in at. Homes similar are going for 440-450 and mine is priced at 470. Curious to see here soon
Is there a fee for your services
$1640 is my lender fee when you close a loan with me and my team and we waive on VA
Don't do it! This is a risk that big pockets might take, not for a normal buyer.
100%
@@JenniferBeeston if We hired you for a Mortgage, would we deal with you or your team/assistant?
You work with myself and my team. Once you are fully underwritten you and I spend 30 minutes to an hour on the phone talking about your game plan as well as going through closing cost and mortgage payments. I have some clients I talk through talk to a lot through the process and others that prefer the team so it’s whatever you want, but I’m involved in everything.
😂😂😂😂