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kapaclass · Joined: 21 Apr 2009 Posts: 1 1.51 Dollars($)

In the process of refinancing our home, our appraisal came out less than we had guessed. Due to our moderate credit rating and the amount we are refinancing, we have to either pay "insurance" on the loan, out of the amount borrowed, or refinance through FHA, which requires a further more thorough appraisal (at a reduced rate, we were told, since we just had an appraisal), or go through another lending institution, which was going to give us a better deal, based on the numbers.

Now for the main question, since we just paid $350 for an appraisal, can we use the same appraisal for a different bank, or at least get a discount on another appraisal? It doesn't seem right to have to pay full price for another appraisal within weeks of having one, though the different institution is saying we need to. We live in Pennsylvania, by the way. Thanks.

smckaybiz · Posted: Wed Apr 22, 2009 3:22 am Post subject:

Welcome to the forums kapaclass,

This is very common for a mortgage company to want to do their own appraisal even if one has recently been done.

Did you request to receive a copy of the last appraisal? Some lenders may be willing to work with you on this especially if they use the same appraisal company.

If the other lender is offering you a better deal as far as your rate goes than it would more than likely be worth while for you in the long run to go with that and just pay for another appraisal. When talking mortgages, a small difference in the interest rate can mean $1000's of dollars in savings over the course of your loan.

donnabagley · Posted: Wed Apr 22, 2009 7:17 am Post subject: can i reuse a recent apprisal?

Chances are you can not reuse the appraisal. Appraisals are only good for 6 months. Also you have to consider property values are declining in many areas. Lenders are asking for new appraisal to insure the value is still there.

The answer regarding a discount for a second appraisal- usually no. However if you speak to the appraiser it will be their decision. You should also know many lenders will order a review appraisal. The value may really not be there any longer.

Guest

Thanks for the welcome!

Donna, in actuality, the appraisal was done last week. That is why we would really prefer to have that one used, if possible.

Smckaybiz, we did not receive a copy of the report, though I imagine that since we paid $350 for it, we could certainly request one--am I correct?

Since I posted the question, I have wondered as well as to how likely it would be that the second appraisal could come out lower in value?

The new company said they would rather use someone they know...I understand that. However, is there some way to find out how reliable an appraising company is, so that another lending institution would trust the appraisal?

Otherwise, we will have it reappraised. The other company does have a better deal.

stacy · Joined: 25 Sep 2007 Posts: 15 Location: CA 4.83 Dollars($)

Most lenders will work with you on an appraisal this fresh. However, there are some who want it their way and if by doing it their way means a much lower rate - take it!

But, all ya have to do is ask!

JKennedySLG · Posted: Thu Apr 23, 2009 5:29 am Post subject:

You should be ok to use that appraisal pending whomever ordered the appraisal for you is going to release it to the new lender. That may have a cost to it of about $75-$100. Also, if you're thinking about going FHA, there will be insurance on the loan with this loan as well. The insurance is a bit cheaper for FHA as apposed to a Conventional loan. I hope this helps...

Guest

We refinanced in March and last week the lender (same lender) called us to say we could re-refinance at an even better rate. But they are asking for another home appraisal. Saying 'it's the law'. Is it? THey have yet to be able to quote said law to me & I am not a happy camper.

netherton · Posted: Wed Jun 30, 2010 12:01 pm Post subject:

It may be a guideline but no it's not a law. What rate on what term do you have now?

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Can I reuse a recent appraisal?