The reverse mortgage appraisal process and steps is simple to complete. There are some rules and regulations that you must follow when getting an appraisal, which is now federal law. The following steps may help clear up some questions you may have when getting a reverse mortgage appraisal, which is one of the most important processes while obtaining a reverse mortgage.The Appraisal
Since the reverse mortgage loan is insured by the Federal Housing Administration (FHA), then your home must be appraised by an FHA-approved appraiser. When the appraiser comes out to your home, the appraisal takes anywhere between 30-45 minutes to complete. They should do a thorough inspection of your property inside and out, with pictures of each room (including kitchen, bathrooms and garage). Once the appraiser leaves, they will research the area to find similar homes to yours that has sold within the past 6 months. Usually it takes up to a week for an appraisal to be complete, from the time of the walk through to the delivery of the report.
Appraisal Cost
Since the appraisal must be completed by an FHA-approved appraiser, the cost is typically a little more than a conventional loan appraisal, but the cost does vary by county.
Who Orders the Appraisal and When?
The appraisal is always ordered by the lender you are using to obtain your reverse mortgage loan. The appraisal is not actually completed by the lender. The lender orders the FHA appraisal through a third party appraisal company. As of 2010, the lender is the only one that can order the appraisal, no longer can the borrower order it.
The appraisal will be ordered once the loan officer completes and pre-approves the borrower for the reverse mortgage loan.
How Long is the Appraisal Good for?
Typically, an appraisal is good for 120 days from the delivery of the report, but can vary by lender.
The Borrower’s Responsibilities
As of 2010, no one may influence an appraiser to drive up or down the value of a home. The borrower, loan officer or even the lender are not allowed to speak with the appraiser in regards to the value of the property, this has become a federal law. The reasoning behind this is because of the influences appraisers were getting during the housing bubble and burst of the mid to late 2000′s.
After the appraisal is received by the lender, they will contact you with the results and give you a copy of the appraisal. At that point, the appraisal will be given to the underwriter to complete the review of the reverse mortgage loan and give a final assessment.
Please fill out the contact form at the right or by clicking here and have a qualified representative contact you!
http://www.reversemortgageloanfinancing.com/2013/08/13/reverse-mortgage-appraisal-process-and-steps/
Reverse Mortgage Appraisal Process and Steps
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Reviewed by Merlyn Rosell
Published :
Rating : 4.5
Published :
Rating : 4.5