Easy Alternative Appraisal Tips
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May 25, 2022 |
Easy Alternative Appraisal Tips
Follow these steps for hassle-free appraisals
It is common for alternative lenders, like Neighbourhood, to focus primarily on the property rather than income. Whereas bank, institutional, and monoline mortgage lenders focus mainly on the borrower's income and credit.
On alternative deals, the appraisal report has a lot of bearing on the lending decision, so here are some best practices:
1. Check to see if the lender you are working with has an approved appraiser list
Appraisers on this list will be more familiar with the lender's requirements in an appraisal report.
2. When ordering the appraisal, be sure that the applicant's name and address are correct.
Incorrect information may result in additional back and forth with the appraiser and underwriter.
3. When you receive the appraisal report, have a glance to ensure the following are correct:
Applicant's name
Lender name
Address of the property
Appraised value
4. If anything in the appraisal report isn't what you expected, let your underwriter know about it so they can help you find a solution.
Imagine the appraisal report as a cover letter and resume for the property. The appraisal having correct information instills confidence and will help your deal get approved.
Author Profile
Jared Stanley is the Senior Director of Originations at Neighbourhood Holdings. He has been in the industry for nearly 15 years. In 2015, Jared was awarded Underwriter of the Year by the Canadian Association of Accredited Mortgage Professionals. He is also a motorcyclist and dog lover.