Why would appraisal be waived?
Waiving the Appraisal Put simply, this means the lender accepts the sale price, or the estimated home value, as the actual value of the property.
Usually, only strong borrowers with significant equity achieve an appraisal waiver..
What if you don’t agree with your home appraisal?
“If a challenge or a review doesn’t change the appraisal, then a buyer can ask their lender to hire another appraiser,” says Stephens. “Be sure to request someone with geographical knowledge and explain why you are asking for a second appraisal.”
Why would a lender not require an appraisal?
A no-appraisal loan is a mortgage that does not require a professional estimate of the collateral property’s current market value, known in real estate parlance as an appraisal. … The risk to a lender is simply too great if there is no impartial assessment of the value of the property the lender is financing.
How do I get an appraisal waiver?
Who Can Get An Appraisal Waiver?One-unit properties, including condominiums.Limited cash-out refinance transactions: … Cash-out refinance transactions:Purchase transactions:Loan casefiles that receive an Approve/Eligible recommendation (you must have an excellent credit score and high assets for approval)
Why would a bank waive an appraisal?
When are appraisals not needed? Appraisals are documenting for the bank what the collateral, the home, is worth. So, when an appraisal is waived, or not needed, it is the bank essentially saying, “we’re going to accept the value as you have put it on the application.” That’s part of our job.
Should I waive my appraisal?
Chicouris advises that buyers only consider waiving the appraisal contingency if they’re working with an agent “and the agent can validate the value of the property and maybe the future potential of the value.” Other reasons to waive the appraisal contingency could include a superior location, the potential for …