Zillow Advice: Approval Process - Does appraisal mean approved? http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ Zillow Advice | Zillow Real Estate Appraisal does not mean approved.&nbsp; ... http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ Appraisal does not mean approved.&nbsp; However, you should have been preapproved before you ever paid anything.&nbsp; The preapproval letter should give you some peace of mind hopefully. Thu, 23 Oct 2014 19:53:00 GMT http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ 2014-10-23T19:53:00Z What if the property you're ... http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ What if the property you're purchasing is in a rural area where pricing is all over the map with no good recent comps? I understand what the appraiser's job is, but pulling usable comps within the lender's guidelines is a tough job. How to read the "tea leaves" to know IF your purchase price will equal the appraisal? Property in question has already been lowered $100K from list, and is now $20K below that at accepted offer. And still it might not appraise at agreed price. What to do? Wed, 22 Oct 2014 18:58:00 GMT http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ 2014-10-22T18:58:00Z The way I explain the financing ... http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ The way I explain the financing process to buyers is that the bank is evaluating three things: 1) You, 2) The House, and 3) Your Loan Type.&nbsp; <br/><br/>Your application, pay stubs, W-2s, tax returns, job history, credit history, credit score, etc. are all reviewed to determine the level of risk for giving the loan to You.&nbsp; An appraisal is done by an independent appraiser to determine the current market value of the House.&nbsp; The appraisal report will also note whether the House conforms to the guidelines of the Loan you've applied for.&nbsp; <br/><br/>You could have excellent credit and be a great borrower candidate, but may not get approved if the House doesn't qualify, based on a variety of factors.&nbsp; For example, the USDA Rural Development loan does not lend on mobile homes or duplexes.&nbsp; In that case, you would be directed to apply for a different loan, such as an FHA or Conventional loan.&nbsp; The USDA loan program also requires GFCI outlets in the kitchen and baths, handrails with balusters on staircases and porches, and cannot have peeling paint if the structure was built pre-1978 (before hazardous lead-based paint was banned).&nbsp; Some sellers are willing to take care of these types of issues in order to satisfy an appraisal.&nbsp; If not, the loan will fail, and you could either apply for a different type of loan, or move on to another property.&nbsp; <br/><br/>It is important to understand the various elements that go into financing.&nbsp; It's not just about your credit score, or debt to income ratio.&nbsp; A good lender should be able to explain all their loan products and help you identify the one that's right for you.&nbsp; Not all lenders offer all loans, so if you don't like the answers you get from one lender, ask for a referral to another lender that may be a better fit. Thu, 14 Nov 2013 22:17:00 GMT http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ 2013-11-14T22:17:00Z And here is the flip side ... http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ And here is the flip side of how things sometimes work.<br/><br/>If the appraisal comes in too high, sometimes that will cause the financing to fail.<br/><br/>Underwriters have VERY specific guidelines for their process. If the loan type that you applied for has an appraisal guideline that the property does not meet, then the loan will fail. I have seen deals fail when the appraisal came in too high. It triggered something in the underwriter's guildeline and they had to deny the mortgage.<br/><br/>I understand it is pins and needles having to wait, especially this being your first time. The only thing I can say is, it is a long weekend, so you will probably not get an answer in the next few days. Underwriters can be pretty busy and if the bank uses a regional underwriting center, then it could be a bit longer before you get a decision. Best thing to do is concentrate on having some fun and getting away from thinking about the whole thing. There is nothing you can do until you get an answer. Go see a movie, dinner or anything else that will keep your mind off not knowing.<br/><br/>Things you should NOT do.<br/>1. Shop for a new car.<br/>2. Shop for a large electronic purchase or furniture.<br/>3. Talk to any of the furniture rental places.<br/>Doing anything at this stage of the game that would include having your credit pulled is a quick way to stop things. I know a person that went car and furniture shopping the week before their closing and dropped their credit score 30 points with the credit applications for their new "toys." They almost lost the home.<br/><br/>Other than that, get ready for Thanksgiving and enjoy the rest of the season.<br/><br/>Good luck! Sat, 09 Nov 2013 20:16:00 GMT http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ 2013-11-09T20:16:00Z Great question. Once the ... http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ Great question. Once the appraiser has appraised the property, that does not mean that your loan is approved. &nbsp;Typically it takes a few days to get the report back and off to you and the lender. &nbsp;Nevertheless, if the property does appraise, then the loan process proceeds. &nbsp;If it does not appraise, then you and the seller either have to agree to lower the purchase price, or you would need to cover the difference. &nbsp;Or, of course, you can seek to back out of the transaction.&nbsp; Sat, 09 Nov 2013 17:44:00 GMT http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ 2013-11-09T17:44:00Z Thanks for &nbsp;this info. ... http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ Thanks for &nbsp;this info. I guess it is just a case of wait and see what happens... I did talk with the bank manager today and she said that she would approve me based upon my income, debt, and credit and that was what she recommended to the underwriters but unfortunately the underwriters have the final say... How often do underwriters go against what a bank manager would recommend?? Sat, 09 Nov 2013 14:20:00 GMT http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ 2013-11-09T14:20:00Z It depends entirely on how ... http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ It depends entirely on how the lender/originator is managing your application.&nbsp;&nbsp;&nbsp; Generally speaking a good approach is to order appraisal only after the loan has reached approved with conditions stage and the review and submission of conditions results in anything "iffy" being resolved before the appraisal is ordered.<br/><br/>While it is certainly a good sign that your appraisal was ordered, it doesn't imply anything good or bad regarding the status of your application.&nbsp;&nbsp; If you would like a better feel for your likelihood of success ask your&nbsp;loan originator to provide you a copy of the commitement letter or list of "Prior&nbsp;to Closing" conditions and then review each with you so you&nbsp;understand what items are pending before your&nbsp;full approval is&nbsp;issued. &nbsp; Fri, 08 Nov 2013 23:28:00 GMT http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ 2013-11-08T23:28:00Z I was also only wondering ... http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ I was also only wondering if the appraisal was a good "indicator" that I am approved? I understand that everything has to match up before I am actually approved. Fri, 08 Nov 2013 21:35:00 GMT http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ 2013-11-08T21:35:00Z I am pretty confident that ... http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ I am pretty confident that the appraisal will come back higher than what I am purchasing the home for. I am getting a special "family rate" on the house as I am buying my grandparent's house from the estate. I am hoping that since they ordered the appraisal, they are confident in my ability to pay as long as the house is worth what I am buying it for... Fri, 08 Nov 2013 20:52:00 GMT http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ 2013-11-08T20:52:00Z The short answer is no. &nbsp;An ... http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ The short answer is no. &nbsp;An appraisal is what the lender orders to see what the home is actually worth. &nbsp;The lender is not going to approve a loan for say $150,000 when the home is only worth $142,000. &nbsp;If the home appraises for less than what you agreed to buy it for, then that is something you would need to work out with the seller before closing. &nbsp;Sometimes the seller will come down on price, the buyer will go up in price or both. &nbsp;If the appraisal comes back too low, then the listing agent should talk to the lender, show them her CMA and try to get another appraisal. &nbsp; Fri, 08 Nov 2013 20:26:00 GMT http://www.zillow.com/advice-thread/Does-appraisal-mean-approved/518400/ 2013-11-08T20:26:00Z