Accuracy of appraisal

graywings123April 12, 2009

I will be closing on the purchase of a house tomorrow. Yesterday in the mail, I received the appraisal performed for the mortgage company. It has some errors in it, notably that the wood frame house has vinyl siding.

By some strange coincidence, the house appraised at the exact sum that I am paying for it. That amount is lower than I thought it would have.

Now that I have my loan, does this appraisal matter for any purpose?

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Nope, doesnt matter at all. I asked an appraiser once why the appraisals always seem to come in at "just the exact number needed for the loan". He told me that if it is more than 5% difference than what is needed they have to do a lot more paperwork. They are less concerned about giving you an exact appraisal and more concerned with just giving you what you need.

    Bookmark   April 12, 2009 at 10:39AM
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Appraisers have had a petition before congress for years, imploring them to crack down on lending institutions that blackball appraisers who don't come in at a predetermined no avail.

Consequently, the appraiser either plays ball or closes up he/she will receive very little if any business otherwise.

One more mystery solved regarding how so many homes were sold and mortgages issued for such inflated values.

    Bookmark   April 12, 2009 at 11:41AM
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