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Do I lose the appraisal fee if I don't go with the lender who originally ordered the appraisal?

I paid $400 upfront for an appraisal of a house I'd like to purchase through one specific lender.  However, I'm now hearing that the lender won't approve my loan because I'm a firsttime homebuyer for an investment house.  If I pull away from this lender and go elsewhere, can I still use that appraisal report I already got from the first lender?  Or am I out $400 for that first appraisal report?
  • April 23 2009 - Davis
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Answers (7)

In about 1 week... as the FNAM lenders (wholesale that is) are making major changes about the "ordering" of appraisals and although your appraisal might be peacefully released... The new "lender" may require a hands off approach from your originator and this concern may be water under the bridge.  I have received notices from all of my lenders that the "ordering" rights for appraisals are now a thing of the past.  Get the facts about it as times are changing and very fast.  Good luck.
  • April 23 2009
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Most lenders wil send that appraisal to the new lender. If you are buying FHA or VA, then the appraisal is already in the system and can be pulled by any lender. If you are going with a conventional loan, then the new lender should be abe to contact the appraiser and get a new copy. Those appraisals are supposed to be good for at least 60 days. Good luck!
  • April 23 2009
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Profile picture for mathewaccord
thanks for the tips people
  • April 23 2009
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avonlea999:
It is hard to answer this question for you definitively.  As a lender, I can tell you that appraisals sometimes can be used by another lender, but there are often stipulations to that.  It many times boils down to the underwriting for the new lender used.  Some lenders will accept an appraisal done for a prior application, others won't.  If the appraiser themselves are approved appraisers for the new lender, it is more likely that they will accept the work already completed.  It is just as likely that they won't however, especially in this challenging real estate market.  Underwriting is much more regulated now and guidelines for lending much stricter.
My suggestion is to just ask your new lender, but be prepared for a "no" answer.  There may be nothing you can do to change their course of action.
I do wonder why additional questions and measures were not taken to pre-qualify you a little more in-depth with the first lender.  Normally a lender can run scenarios by their underwriters to get a better handle on what will be accepted or not.  Plus, it's definitely an example of why you need to use an experienced lending professional.
If I can answer any questions for you, please feel free to contact me here at Zillow, through my website (www.genemundt.com), or my email, gene@chicagobancorp.com.
Best of luck on purchasing your investment property!
Gene Mundt, Professional Mortgage Banker
Chicago Bancorp
  
  • April 23 2009
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I wish I knew that answer.  I was fully upfront about my standing as a first time homebuyer trying to buy an investment home.  The loan was originally being processed under my name with my Dad as a cosigner.  But now the lender says that my Dad can be approved, but not me, despite the fact that this house has always been for me.  Now I have to shop for lenders elsewhere, but this first lender already ordered and had me pay for the appraisal before informing me that my loan had issues.  Frustrating, to say the least...
  • April 23 2009
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word = work
  • April 23 2009
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The appraiser fee goes to the appraiser for the work completed. That word wouldnt have been completed if it wasnt for your interest in purchasing the home.

What I am confused about is why didnt the investment property scenario come up before you paid for an appraisal? If you fully disclosed to the loan officer what your plans were they shouldnt have ordered the appraisal.

  • April 23 2009
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