In today’s active market it can take time for values to reflect all sales activity. Taking a proactive approach to the appraisal process will help the appraiser when it comes time to execute the report.
1. Schedule the appraisal as soon as possible. If you are going to be away, make sure you have coverage for the appraisal appointment. Keeping the process flowing helps avoid delays in the loan approval process.
2. Stage the home as though you are conducting an open house. Now that the property is under agreement, don’t let your seller get too relaxed. Make sure that the house looks as good as it did the day the buyer first saw the property. First impressions do matter, so keep the property showing well!
3. Make sure you get the fully executed Purchase and Sales agreement (P&S) to the lender right away. Appraisers are now charged with reviewing the purchase contract to determine that the property as appraised matches the property represented in the agreement. The appraiser is required to review the P&S before they can release the appraisal report. It is vital that the lender receives the agreement on time.
4. Always be prepared to support the sales price by bringing a folder that contains the comparable sold properties that you and the seller used to determine the list price of the property.
5. List any improvements made to the property since last sold. Especially those changes that are not so readily visible such as electrical, plumbing or roofing work. List all improvements made since the last recorded sale of the property.
6. If the appraisal on a purchase comes in low, keep an open mind and don’t panic. There can be ways to manage this situation that keeps both the buyer and seller in the transaction. It is important to work directly with your loan originator and together you may find solutions that work for all involved.
About Wintrust Mortgage: Wintrust Mortgage was created to assist in the realization of the American dream of home ownership. Our large volume and the ability to lend in all 50 states make us one of the largest mortgage bankers in the country. In 2015 alone, we originated $4.3 billion in loans. Wintrust Mortgage hosts over 190 retail, operations and bank locations across the country. Wintrust Mortgage is a division of Barrington Bank & Trust Company, N.A., a Wintrust Community Bank, NMLS# 449042. Equal Housing Lender. For more information visit the company website at www.WintrustMortgage.com, “Like” us on Facebook by visiting www.facebook.com/WintrustMortgage and follow us on Twitter @WinMortgage.