A. If you are serious about purchasing or refinancing you should not wait to get an appraisal done. An appraisal is one of the most crucial parts to obtaining a loan. The value of the property can impact the loan. If you are looking to purchase a new home then it is something that you should want to have done. With property values changing it is important to make sure that the property you are thinking about purchasing is truly worth the negotiated.
A. Either you or the broker/banker that you are working with can order the appraisal. You may want to take it upon yourself and order your own appraisal. This way you have full access to the report and if you need to show it to multiple lenders you have it at your disposal. If the broker/banker orders the appraisal for you, it can sometimes become difficult if you switch to a different company as the appraisal is the possession of the original broker/banker.
A. Appraisal costs can vary from state to state as well as different property types. IE: a multi family appraisal is going to cost more then a single family appraisal.
A. We suggest that you do some research, especially if you are going to order your own appraisal. The last thing you want to do is hire an appraiser who does not do there job the right way. Many appraisers have been accused and or blacklisted from an investor do to the fact that they attempted to stretch or over appraise a property. If the property value is not easily supported by other comparable homes then you may want to be cautious of an appraiser who is attempting to stretch the value as this will only lead to you possibly owing more then you borrowed, especially in a bad housing market. If your broker/banker is ordering the appraisal then you may want to ask questions about the company that they use. Ask to see the appraiser's credentials or resume.
A. This can vary depending on the individual appraiser. Some appraisers do this as a full time job and some do it as a part time job. An appraisal should take no more then 5 business days from the initial request.
A. Yes, each state as well as each lender require that the appraiser is licensed as well as insured.
A. Yes. The property is the collateral for the mortgage, therefore an appraisal is almost always required and if a borrower pays for the appraisal he or she is definitely entitled to receive a copy of it.
A. Generally, a new appraisal and credit report are necessary.
A. In most cases the investor will allow you to borrow assets. Each lender has particular guidelines that they follow but typically as long as he assets can be properly documented then the investor should be ok with this. FHA will allow for 100% of the assets to be either borrowed or gifted. Check with you broker/banker if you are planning on borrowing assets.
A. This is typically allowed by the investor. But it is recommended that you check with your broker/banker to make sure that the particular lender they are closing the loan with allows this.
A. Yes. However the bank will take into consideration the type of fund as well as if the fund has any type of a tax on it, especially if the money is being liquidated to be used for the loan.