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During the process of getting our loan, the credit union required an appraisal of the property. The appraisal turned out fine (it was higher than the contract price) but my understanding is that a low appraisal could jeopardize financing. In that case, we could have either (a) ponied up the difference (which seems unwise) or (b) negotiate with the seller to lower the contract price to be in line with the appraisal. If (b) fell through, then we possibly could start over fresh, albeit in a much stronger position because we have the appraised value in hand. Which brings me to my question. If I were to renegotiate quickly enough, would I need another appraisal? They cost money, and if I don't need one, there would be no reason to get another. But would a credit union take a recent appraisal in place of a fresh one at all? |
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When I bought my house and they claimed I had 10% equity (as opposed to the -$166k that I have now), the financing guy told me it was good for six months, just in case I wanted to take a home equity loan to pay off my debt. This was about two years ago. Given the changes in the market and the length of time that sales are taking due to slow bank responses on foreclosures and short sales, I imagine that it has probably been stretched to 3 to 6 months. Thanks for the insight! That's far longer than I would have guessed. (Though maybe I don't understand the mechanics. If markets are going down quickly, for example, I'd expect the appraisals to be out of date more quickly.) But on the other hand, I do seem to remember that the appraisers were looking for comps among properties sold within the last six months, so it may be related to that number.
(Feb 07 at 09:34)
mbhunter ♦♦
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I would bet it would be different for every bank/credit union. Unfortunately, have refi'd, borrowed for home and office building-I always get competitive proposals-everyone is different on whether they want a new appraisal, and some will let you choose appraisers and others choose them for you! Go figure. |
