Lenders depend on high-quality and efficient mortgage appraisal process to finalize a loan. Appraisers will review the appraisal documents and evaluate the borrower’s property to determine its correct market value. Based on this analysis lenders will do a comparison of the loan amount to the property value given by appraisers, to give a conclusion on the loan amount. That’s why lenders always consider speedy and efficient appraisal services.
Reliable mortgage support services for home appraisal does property inspection and appraisal to determine a borrower’s home value to his/her proposed offer, in line with the market value. The home value is assessed on various factors (location/neighborhood, external/internal features, upgrade/renovations, etc.).
Lenders mostly consider outsourcing appraisal services since there is a constant request for loans. The sole reason for this is because of its proactive and well-informed approach that ensures loan processes to become smooth.
Lenders can do following with their borrowers to make appraisals speedy and more efficient.
Ensure Borrower has all the Necessary Property Documents
Lenders make sure borrowers have all the necessary property documents with them when an appraiser does the mortgage appraisal for their home. This will facilitate a speedy process, which also exhibits the borrower’s readiness and cooperation. Some of the required documents are:
- Deed Document
- Flood Certificate
- Details of property amenities (pool equipment, security systems, etc.)
- Survey/plot plan (if any) received by the homeowner at the time of closing the house
- The latest property tax bill
- Complete list of home upgrades/improvements made for calculating installation date and costs incurred
Proofs on Home Improvements/Upgrades
Lenders ensure that borrowers have documented expenditure proofs on all the home improvements/upgrades. This will help appraisers to make a correct evaluation of the property. Even renovation expenses on structural and electrical systems would also help. All these will contribute to an increase in property value for borrowers during mortgage appraisal.
Have Borrowers done their own Comparative Market Analysis?
Appraisal services compare recent property sales in a borrower’s area to the borrower’s property for the right market value. Borrowers can also do comparative analysis (with at least three or four recently sold neighborhood properties) with information already available from online sources.
Comparative Market Analysis or ‘comps’ consider the Following Factors:
- Neighborhood characteristics
- Local housing market trends
- Sale prices of comparable homes recently sold in the area
- Lot and home size
- Age and design of the home
- Types of interior and exterior materials
- Condition of the home
- Amenities, such as fireplaces or decks
- Home improvements and renovations
By doing so the property valuation will be smoother for appraisers and for borrowers to support their case. Comps also consider factors such as the number of bedrooms, bathrooms, square footage, location, age, and home improvements with similar neighborhood properties that help in determining the correct home value for borrowers’ property.
Is the Property Unique?
If a property has unique aspects, lenders should ensure that they know about the details of the same from borrowers. And it is important to share these details with outsourcing appraisal process providers well in advance. The aspects that make a property unique are as follows:
- High-performing with good building enclosure/insulation
- State-of-the-art facilities/amenities
- Comfortable and healthy to live in
- Energy Efficiency/Smaller carbon footprint
- Use of sustainable/eco-friendly construction materials/components
- Affordability etc.
An appraisal fee always depends on a property’s type, so it is always important for lenders to share property details with appraisers well in advance. This eliminates any complications or rejection of appraisal assignments, or else it might cause delays in the process.
An appraiser’s job is to assess borrower properties with an independent and objective perspective to determine the right market value. So, well-versed lenders need to educate their borrowers about how home appraisals are carried out. This is why lenders outsource mortgage support services for home appraisals as they can act as an expert intermediary. And the above steps are taken by lenders to expedite the intricate processes of appraisals for time-bound and proficient results, making the process smooth and efficient.