Refinancing... an I do the appraisal first?

Question

I am in PA.  I am trying to refii a couple of SFH's.   I have done this before...went through the whole process, credit check and all only to be SUPER lowballed on the appraisal.   Is there anyone who will do the appraisal first.  I hate having my credit hit for no reason.  I have worked very hard to get it where it is.  Thoughts?

Eric James · Answer

Most likely the appraisal was accurate and your estimate was too high. If this happens to you repeatedly it's definitely your ARV estimation that is off. In that case you just refi for what you can get.

Paul Defngin · Answer

You will need to have an application first for your lender to order an appraisal.

You should have an idea of what properties in your neighborhood is selling for before you start. And if you don’t I would do a bit more research on that first before proceeding. You want to be conservative as possible.

Timothy Hero · Answer

If comps support the appraised value, there's no such thing as it being "low balled". Often times, my clients tell me they expect a value of $200k - $215k and I research and don't see a single comp over $180k. Or they're comparing their 20-year-old home to the newly constructed homes.

All my private lending partners pull credit in the beginning. Nobody wants to pay their employees 2-3 weeks of work only for your credit to fail and it be a dead deal.

Bikash Chhetri · Answer

@Emil Heintzinger you should hire an appraisal company to do the appraisal and that will later on challenge the lender’s appraisal in the event of a shortfall. As to the credit check tell them to do a soft pull which is just 2 credit bureaus but should be enough for a loan application.

Jim Spatzenfeld · Answer

Sounds like your main worry is your credit score being dinged from the inquiries? My experience is that it’s only 2-5 points and only temporarily for an inquiry. No biggie.

Eric James · Answer

No problem then. Just get another lender and your appraisal will come in fine.

Doran Summers · Answer

@Emil Heintzinger a few lenders allow you to use one of their AMC appraisers they use before you run your credit.

Emil Heintzinger · Answer

@Alan Lacey I want to use their appraiser.   Just dont want to go through tile process if the appraisal isn't there.

Emil Heintzinger · Answer

@Eric James Usually I would agree.  Not in this case.  But thanks!

Alan Lacey · Answer

@Emil Heintzinger  no lender will do that in my opinion. They can’t use a appraisal ordered by a interested party in a transaction, and they can let take a deposit to order one with out a application.

Refinancing... an I do the appraisal first?

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