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I'm buying a house under a FHA loan I have been approved but a condition was for a second appraisal

  • July 29 2013 - Las Vegas
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Many times a commitment letter from the bank will have a physical problem the appraiser has identified needed within the home for safety and or function.  An example of this -- a missing handrail needs to be installed.  The appraiser returns to the property to confirm the intallation of the handrail and the condition is removed ...allowing the loan to go forward.  
  • September 05 2013
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If there is a condition on the first appraisal, that condition must be cleared, it could be the simplest thing ex. a crack window or the closet is missing the carpet... and if is not cleared the loan could get cancel, now in regards of who will pay for it, the buyer should not do any repairs with out the sellers consent, and if the contract says that the property is being sold  "as is" that is an issue, most of the times the seller will correct the issue(if they want to close). And yes, there must be a second inspection paid remember that the appraiser is a third party hired by the buyer, and if the appraisal was to be paid by the seller they must be informed.
  • September 05 2013
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In the case that the current owner has owned the home less than 90 days and is now selling the home for more than 20% above their buying price, then the lenders will typically ask for a 2nd appraisal.  They will use the lower of the two appraisal values as the value of the property in underwriting.  Lenders can ask the seller to provide invoices to support the purchase price, and typically will require a home inspection and a pest inspection. 

The good news is you should now have to pay for the 2nd appraisal because the seller is required to pay for the second appraisal in an FHA transaction.
  • July 29 2013
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Is the house being flipped by an investor(Resold)? A second appraisal is almost always required if an investor purchased the property and rehabbed it and put it back on the market for sale. The lenders watch what the investor makes in this situation. It depends on what they invested in the rehab to get it ready for resale. It is an attempt to protect the consumer. a second appraisal is usually not a big deal except for the cost. Have your agent do some research and see what the seller paid and what was done to the property. Make sure you are within the guidelines before you pay for a appraisal. I hope everything goes well with your purchase.
Thank You
Suzie Marquardt

  • July 29 2013
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