This is the appraisal that almost killed the deal! 😫
It didn’t come in low, it was worse.
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When my borrowers are scheduling their appraisal inspections I have one thing to tell them- act like you’ve just been arrested.
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Act like you can’t say anything without an attorney present.
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Appraisers have a habit of taking a small detail and derailing an entire loan.
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In this instance, a borrower mentioned he would be at his rental for a few days to fix some issues at the home.
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The appraiser took that to mean he lived at the house, otherwise known as an owner occupied property.
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As soon as the lender got word of this they immediately tried cancelling the file.
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Luckily, they informed us before taking action.
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Immediately drafted a Letter of Explanation detailing the repairs the owner was working on and we were in the clear.
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When an appraiser calls you to schedule the inspection don’t:
Say you’re going to the home to fix issues
Give them a description of your exit strategy
Give them any details other than what day/time they can go in and if there is a long term tenant there
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That’s all they need.
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Give them more and they can, and will, use it against you.
