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Are there lenders who will lock in without upfront appraisal fees?

We are trying refinance a single family home.  Most lenders require upfront appraisal fees.  We would like to lock in without having to pay appraisal fees upfront. Once we lock in, we would be happy to pay for the appraisal.   Since the GFE doesn't really hold much weight, we would prefer to get an official lock in before paying for an appraisal.  Any help would be greatly, greatly appreciated!

 

  • December 11 2011 - Fairfield
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Answers (3)

Of course there are. We do it all the time (actually we don't runt he payment for the appraisal until late in the loan process).

However a GFE is worth the same thing before and after an appraisal. If the appraisal comes in lower than expected it can be considered a change of circumstance and the lender can redisclose with a new rate based on the new Loan-To-Value ratio. So it really makes no difference if you lock before or after an appraisal is ordered, completed, or paid for. The new GFE is binding based on the initial disclosure regardless of if the appraisal fee is paid upfront.

One thing you can do if you are worried about value is to ask for a lender to do some comp research for you. Have them send you 6-10 of the most like comparable sales in your area. I do this on pretty much every refinance as this can tell you a lot sometimes...

Sincerely,
Greg

  • December 11 2011
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I can lock in a client's rate  without collecting the appraisal fee; but the bigger question is, why would I?

Since you're not willing to put any skin into it, in this case the funds to pay for a required appraisal, which tells me you're obviously not serious about refinancing so why should I spend money hedging your rate?
  • December 11 2011
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Absolutely! I can't speak for other lenders since it depends on their policy, but we do that all the time.

Let me know if I can be of help. Thanks!
  • December 11 2011
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