Mortgage Lenders Review Appraisal Valuations With Heightened Scrutiny
Up until recently, underwriters usually rubber-stamped an appraisal report if it included information about three comparable properties that sold in the area within the previous six months that supported the purchase price of the property being appraised. Due to the fact that property values are under pressure in some areas, lenders may ask to see information about comparable listings that sold within the last three months. The more recent the comparable, the more indicative it is of current market value, particularly in a changing market. In areas where it is evident that property values have declined, borrowers may be required to increase their cash down payment by 5 percent. The lender will still make the loan, just not for as much as the borrower requested. This can pose a problem for borrowers who are cash-strapped.
search for : appraisal report
