Though we may be starting to see some more favorable housing inventory and home prices, it’s still a very competitive market. Not only is it important for buyers to make a strong offer, it’s also key to keep your loan process moving in a timely manner. That’s when having an Appraisal Waiver to speed up the process could come in handy.
WHY DO I HAVE TO HAVE AN APPRAISAL?
An appraisal is a professional valuation of a property. The appraiser is a third-party professional that provides an unbiased opinion of how much the home is worth after the seller accepts the buyer’s offer.
If you are financing the purchase of your home with a mortgage, an appraisal is required under the terms of the mortgage to assure your lender that the amount of the loan is accurate to the value of the home.
However, appraisals also benefit you. As a borrower, you don’t want to take out more than you can pay back, do you? By getting an appraisal, you can make sure that the price of the home is true to its value.
WHAT IS AN APPRAISAL WAIVER?
Typically, borrowers will have to have a property appraised in order to be approved for a mortgage. If the process takes too long, it can put your loan process on pause and you could lose out on your dream home to another buyer. We don’t want that to happen to you which is why PrimeLending now offers Appraisal Waivers or Property Inspection Waiver (PIW)1.
If you and the property qualify for an appraisal waiver, you could forgo having to get an in-person appraisal done. Instead, our underwriting system will use existing information about the property and other area comps to assess the value of the home.
We are able to determine if the property you want is eligible for an Appraisal Waiver before you even write an offer. If it qualifies, you will also receive a PIW so that you can waive the appraisal and property inspection contingencies when you make your offer. That way, your offer will stand out to sellers and you can have more negotiating power than other buyers.
BENEFITS OF GETTING AN APPRAISAL WAIVER
Skipping the appraisal process could improve the likelihood that your loan will close without any issues. With today’s higher home prices, there is a chance that some properties will not appraise for the sale price. If that is the case, a lender won’t be able to lend the full amount which means the borrower has to find a way to make up the difference. Your Appraisal Waiver can give you and your seller peace of mind that the loan will go through.
Additionally, appraisals are a part of the buyer’s responsibility. A typical appraisal runs several hundred dollars. With an Appraisal Waiver, you can skip that cost and spend it elsewhere. Maybe put it towards your closing costs or a home décor item—when you save money, you can do what you want with it.
Another great benefit to getting your Appraisal Waiver is that it can speed up your process. Chances are, you won’t be the only person who needs an appraiser to evaluate a property. Depending on how busy appraisers in your area are, the wait time could slow down your loan process. With an Appraisal Waiver, your PrimeLending expert can assess the property value quickly while keeping your loan on track to close.
HOW DO I GET AN APPRAISAL WAIVER?
There are a few things you will need to have in order to qualify for an Appraisal Waiver. This program only works for conventional loan buyers who are putting at least 20% down to purchase a primary residence. For those using the program as part of a refinance, they will need to put at least 10% down. You will also need to be approved for your home loan. If you aren’t, no worries; we can help you get approved.
If you have been fully approved, the other two things you will need on hand to get an Appraisal Waiver is the property address and your offer amount. Once we run all of this information through our system, we will be able to determine if an Appraisal Waiver is available for the property.
Ready to flex the full potential of your buying power? When you pair your Appraisal Waiver with the PrimeLending Buyer’s AdvantEDGE2 and Close On Time Guarantee3, you could make an offer with the confidence of a cash buyer. Connect with your local PrimeLending, a PlainsCapital Company, loan expert today to get started.
1PIW specific to borrower and property and contingent on loan parameters. Restrictions apply.
2All loans subject to final credit approval and acceptable property. Conditions and restrictions may apply.
3Receipt of fully executed sales contract for subject property required to guaranty closing by later of closing date or 21 days. Requirements: single family FHA or Conventional purchase loan, Buyer’s AdvantEDGE pre-approval with expiration date beyond closing. Subject to timely satisfaction of inspection/appraisal conditions. Voided by changes in sales contract, loan program, borrower’s credit, borrower or seller delays, or unforeseen circumstances beyond lender’s control. Lender liability limited to $5,000. Exclusions: refinance, VA, bond, down payment assistance programs, brokered out loans, condos, jumbo, USDA, and unique properties. For full details visit www.primelending.com/buyersadvantedge
