A New Lender Requires a New Appraisal
We have discussed ownership and privacy laws on this blog before, but in short, whoever orders an appraisal owns it. Appraisers are restricted from sharing an appraisal with anyone who is not the owner.
Now, let’s examine a fairly common situation that can cause some confusion. Suppose Bob wants to buy a home. He decides to buy a home with the help of Lender X, and Lender X orders an appraisal from Appraisals R Us. Appraisals R Us completes the appraisal and Bob pays the appraisal fee. However, soon after the appraisal process has been completed with Lender X, Bob finds a better lending deal with Lender Y. The question is, Can Bob and Lender Y use the same appraisal that was completed for Lender X?
Unfortunately, the answer is no. Appraisals are non-transferable from one lender to another. Lender X owns the first appraisal, and it is necessary for a new appraisal to be completed for Lender Y.
The appraisal process for Lender Y can be completed by the same or a different appraisal company. If the same appraiser is used, they may be able to waive an additional inspection fee, since they recently inspected the home. However, they will still need to charge a valuation fee since they will need to complete a new appraisal with the current market value.
We know this can be tricky and confusing. Please feel free to contact us with any questions, and we will try to make the process as smooth as possible.
For an accurate appraisal on your property, please call our valuation professionals today! 208-528-6400
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