There is a potential change in law that would allow home buyers to reduce some of the expense and burden when looking to purchase a home. With any home purchase, a Lender will want the house appraised (to be sure they’re not loaning more than the value of the home). There are different perspectives on the use and value of appraisals given the subjectivity and inconsistency of how appraisals are conducted. Don’t get me wrong, this is an important part of the process – but each appraisal is only a single person’s perspective on a property based on the market and condition of the house and its comparable housings – at that time. A week, two or even a month later – and a different appraiser could have a different valuation. And then there’s the issue of it being done in person or done at a computer screen.
So, as a buyer – you have to get an appraisal done with a lender and hope that it all works out. Well, what if it does? But the lender doesn’t give you a good rate? Now you have to do it all over again and bear the expense of the appraisal all over again. Why? Because Lenders do not take appraisals from others. They have the appraisal done for them.
This (proposed) new law could be very helpful. It would enable “portable appraisals” but also put the majority of the cost of the appraisal on the Lender. Both are good news for buyers and should give you (the Buyer) some options when looking at how to finance your purchase.
Something to keep an eye on:
President Trump Could Make It Much Easier For Home Buyers To Shop For The Lowest-Priced Mortgage