How Lenders and Appraisers Can Work Together Seamlessly
The purchase of a new home is an exciting milestone in a person’s life, but it can also be a stressful and emotional experience. The process can seem very intimidating, especially when a roadblock or two appears along the mortgage journey. While timely and compliant loan closings are the goal, the appraisal stage is typically where one of these roadblocks occurs. This does not have to be the case, however, if lenders and appraisers can come together to create a seamless experience for the home buyer.
When taking a look at the historical relationship between lenders and appraisers, several opportunities jump off the page where improvements can be made. The first is to develop a strong working relationship between the two parties. There are certain regulations around the selection of an appraiser, however this does not preclude lenders from recognizing appraisers for good quality work. Lenders should try to attract and retain the best appraisers, and be able to establish a mutual dialogue. Taking the opportunity to analyze an appraisal—and to know when to ask questions—can assist lenders in improving their communication.
The following suggestions provide some guidance on how to approach an appraiser and foster a positive and mutually beneficial relationship:
Read the entire appraisal repot before contacting get the appraiser
Contact the appraiser when more explanation is needed
Contact the appraiser if a factual error is found
Contact the appraiser if there is additional relevant data for consideration
Do not suggest the valuation is wrong; rather, ask questions that might better explain why the appraisal value was reported as such
Where the relationship between lenders and appraisers is a two way street, transparency by the appraiser is also essential. Appraisers are usually able to disclose a lot about their methodology and the information they used when determining the valuation of the property. They should be prepared to share this information, and be able to anticipate any questions. How the appraisal is presented can also provide additional insight, and help explain the appraisal in a way that makes sense to the reader. A good example of this is the use of visuals to show sales trends that may be compelling to the reader.
Lastly, lenders and appraisers need to work together to deliver improved loan origination times in order to stay competitive in the market. Using traditional methods, the appraisal process can be a long and very manual affair. From start to finish, the average appraisal passes through potentially 8 to 12 touch points, not to mention there is currently an increase in demand…and a shortage of qualified appraisers. Since cutting corners is not an option, the use of technology is a great tool to help perform more appraisals, faster. By utilizing modern communication and tracking methods to complete appraisals quicker, all parties involved will benefit.
The housing market is constantly changing, and so is the need for a more streamlined approach from lenders and appraisers. By taking into consideration the need to work better together, we provide a better experience for the buyer and/or seller. Their experience—and the word of mouth generated by it—is what makes all the difference in such a competitive mortgage market.
At Appraisals Unlimited, our real estate appraisers work quickly to deliver some of the fastest turn times in the market. We have appraisers with vast local knowledge, offering commercial and residential appraisals throughout the Northeast, and in New Jersey. Since 1994, we’ve been a top choose for lenders—order an appraisal today and see why lenders love working with Appraisals Unlimited!
