MLS San Diego

When you buy a home in today’s San Diego housing market, the appraisal can be a crucial in step in signing off on the selling price – and qualifying for a loan. Now, the federal government is making it easier for you to see and review the documents.

Lenders are required to “promptly” provide a free copy of appraisals, reviews, computer valuations and other data are used in the house purchase.  Under the previous system, lenders didn’t have to provide  a  copy of the appraisal unless you requested it. Additional valuation data,  such as follow-up reviews  by a second appraiser, were not subject to disclosure, even though they might have played a role in the final loan decision. Your lender must send you a copy of the full appraisal report, soon after receiving and reviewing it. Alerted early on, you, your realty agent and other advisers should have time to spot errors and then challenge the validity of the appraisal and demand corrections. Or your agent can research other sales comparables on the San Diego MLS database.

Your review of the appraisal can be critical. The valuation compared to your offer could come in low and make it more difficult to secure a loan because the appraiser used inappropriate “comparable” San Diego properties, such as a house that sold at a depressed price because the owners were in financial distress.”

The new rule implements changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 in the aftermath of the housing meltdown. Appraisers are now required to work for an independent company rather than being hired directly by the bank or mortgage lender and they are under pressure not to overstate the home’s value and to follow strict guidelines on comparable sales prices.

The disclosure requirements are limited to mortgages that are first liens on a home, including reverse mortgages and construction loans. If you’re applying for a second mortgage or equity credit line, the bank will not have to provide you appraisal materials, although you are still free to ask.

 

 

 

Its warmer out here in sunny San Diego!