Posted on: 16th Apr, 2009 07:10 pm
I am starting the refinancing and everthing was going good with credit scores and the appraisal came in high enough but the underwriter my bank is using through Fannie May will not sign off on the new loan due to the home comparisons on the appraisal not being new enough. There are none newer to use. Do I have any options?
This is a difficult question to answer. Without knowing all the details about the appraisal and the underwriters reasoning, it is hard to say what the correct action woud be. General observation is that the underwriter is unhappy with the appraisers comparable selection and has requested additional comparable sales. The appraiser should provide those additional sales or write an addendum explaining why they are not available. If this does not satisfy the underwriter, it is then the underwriters call to order a peer review of the appraisal or ask for a new appraisal to be completed. They could even just decide to deny the loan all together.
If I were in your situation, I would ask the underwriter to go ahaead and get a second opinion of value and hope that they are close. Two opinions of value pretty close is usually a good indication it is on target. Otherwise you are always welcome to try a different lender.
If I were in your situation, I would ask the underwriter to go ahaead and get a second opinion of value and hope that they are close. Two opinions of value pretty close is usually a good indication it is on target. Otherwise you are always welcome to try a different lender.
The way my banker is explaining it is that the underwriter for Fannie mae is not believing the value of our house due to no comparable sales in the last so many months. the appraiser has tried three different ways but with no new home sales I am being told we have no other options than waiting for a comparable house to sell. Do all banks have to go through these same underwriters or would it be possible another lender could get this to go.
all lenders have their own underwriters. this is not an underwriter located in a central location reviewing all fannie mae loans. this is precisely as benjamin described. a field review, or a desk review, or a new appraisal ought to be ordered if the underwriter is desirous of more data. it appears unlikely that the appraiser can provide additional comparables due to the lack of sales. whether or not an addendum describing the lack of comparables has been added isn't clear.
underwriters are far more conservative than ever before, and will not hesitate to deny a loan based on unacceptable value.
underwriters are far more conservative than ever before, and will not hesitate to deny a loan based on unacceptable value.
