My Appraisal came in... (PMI, loan, refinancing, loan) - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - City-Data Forum

round4 · 09-01-2011, 02:41 PM

over 25k more than we ever dreamed!!!!

BUT, now I'm being told the underwriter can bring it down? How is that???

Shawn MacAnanny · 09-01-2011, 05:51 PM

Are you refinancing? If youre purchasing it wont matter they will go by the lower of the two. i am having a similar situation with our housing being built. i owned the land outright before we started building and our builder is paying for all of the house, no construction loan so when the house is done i can refinance off of the appraised value. the first bank would only base my ltv ratio on what i paid to have the house built and the value of my land though. the 2nd bank is in the process of working its way around so i can avoid pmi. appraised for 273k, they will only count 251k for ltv the 208k i paid for the house and the 43k appraised value of our 2 acre lot. it doesnt make much sense to me.

phil treadwell · 09-01-2011, 08:05 PM

Underwriters can unfortunately lower the appraised value that is used to qualify and determine the loan-to-value, but they cannot change the actual appraisal. They justify this by saying the the Uniform Residential Appraisal Report (URAR) that you pay for, is only an appraisal opinion. Since the new HVCC guidelines have come into effect and lenders have to use separate appraisal management companies to order appraisals, underwriters do not mess with values near as much as in years past. Most lenders also have a separate appraisal review department to make sure the appraisal was completed using the most accepted and up-to-date appraisal standards. If the appraiser who did the appraisal didn't use the best standards or practices when choosing comparable properties or making adjustments, you might have an issue, but I wouldn't worry about it too much. Congrats on the great value that you received!

round4 · 09-02-2011, 07:23 AM

Thanks y'all. I am cashing out, the property has been in my name since 2008. My parents recently just gave it to me..control of it I should say. So I'm taking this property and cashing out to renovate and build some more, oh and pay off all my bills too!

Looks like closing will be the end of next week. Im so excited!! Thanks!

Good Luck on your deal Shawn, it's alot of hoops, but, worth it in the end.

ETex2 · 09-02-2011, 09:17 AM

The underwriter cannot change the appraisal. He can lower the estimate of value that the mortgage company uses for loan purposes, internally. But the appraisal itself will remain the same. This is not uncommon.

Annemieke Roell · 09-02-2011, 01:21 PM

Yep, the appraised value stays the same. But the Underwriter can lower the amount the lender will loan on it. Their money ... their rules.

round4 · 09-07-2011, 07:36 AM

thanks y'all, should hear final word this morning, closing dates and all, will post, so if it might help someone else, it's has been a nightmare.

Jkgourmet · 09-07-2011, 08:28 AM

Quote:

Originally Posted by round4

Thanks y'all. I am cashing out, the property has been in my name since 2008. My parents recently just gave it to me..control of it I should say. So I'm taking this property and cashing out to renovate and build some more, oh and pay off all my bills too!

Looks like closing will be the end of next week. Im so excited!! Thanks!

Good Luck on your deal Shawn, it's alot of hoops, but, worth it in the end.

A rhetorical question: have you consulted with a CPA to determine how much you owe in gift taxes for the asset (the house) that your parents gave you?

I'd strongly suggest you do. (btw, the IRS can and will chase your parents for the taxes if you don't pay them, IF there is any gift tax due on this transaction.)