We've provided a few examples of each one below so that you have a better idea of how your home value will be determined. Once the appraiser has collected all that information, they will compare your property to other comparable homes that have recently sold in your area. These are typically homes that are within a quarter- or half-mile from yours, and sold within the last months.
Here, they will use the purchase price of the other properties to help inform your appraisal value. For example, if your property is roughly the same size and layout as another home that sold in your neighborhood a few months ago, but it is in much better condition, you will likely be given a higher appraised value. While the lender orders the appraisal, the home's new buyer is the one who pays for the appraisal.
Okay, so the appraisal is now complete. With an appraisal report in hand, your lender will proceed to the mortgage underwriting process. If the appraisal did not raise any red flags, you could expect to close within 2 weeks. The appraisal can bring on added stress, but there are ways to prepare. With Orchard, secure your dream home before you list.
Avoid home showings, double mortgages, and double moves. All rights reserved. Get Started. How long does a home appraisal take? It takes up to 48 hours for an appraiser to schedule a home walkthrough. Appraisal walkthrough: The appraiser will come to your home and do a home walkthrough. Physical inspection This is where the appraiser will examine the actual property. Comparable sales, or comps The examiner will look at recent sales of similar properties, usually sold within the last year, to establish a reasonable cost for the home.
Depending on the size of the home and current housing market, an appraisal can take anywhere from a few days to a few weeks, according to Tom Cullen of Cullen Real Estate and Appraisal Company , an appraiser for more than 30 years. After the house is under contract, the lender will typically order the appraisal through a third-party appraisal management company AMC for an unbiased opinion. According to Cullen, appraisers will typically respond within 48 hours of being contacted.
The response time also depends on the current housing market and interest rates. Different loans can make the response time longer as well, Daniels says. For example, if there is an influx of VA and FHA loans, the appraisal time for those specific loans will be longer, as opposed to a conventional loan. Once you set up a time, the appraiser will stop by the property and look at the interior and exterior of the home , noting physical attributes, quality, amenities, size, and any extra features.
These questions and observations help the appraiser fill out the Uniform Residential Appraisal Report. The form asks for information about contracts, improvements, neighborhood characteristics, housing trends in the area, available utilities, measurements, number and types of rooms, property condition, and whether the property fits with the surrounding neighborhood.
This information will give them what they need to identify comparable sales. The physical inspection can take anywhere from 15 minutes to several hours , depending on the size and condition of the home. We receive a lot of questions from our readers relating to the home appraisal process. Assumptions: This article is geared toward home buyers who use mortgage loans to help finance their purchases which is most buyers.
Mortgage underwriting is usually the next stage that occurs, once the appraiser has completed his or her report. The underwriter will also assess the risk level associated with the loan, and give an approval or denial based on that. While the mortgage and home-buying process can vary from one person to the next, it usually follows the steps outlined below:.
As you can see, the next step in the process is usually mortgage underwriting. And that makes sense, because the appraisal is one of the documents the underwriter will review. At a glance: In a typical transaction, it might take anywhere from one to four weeks after the appraisal for the borrower to reach closing.
But this can vary. It largely depends on whether or not the underwriter identifies issues or conditions during the underwriting stage.
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