There are changes in how property appraisals are being valued when you are buying a home. Lenders are now required to disclose to the home buyer all of the information used to base their underwriting valuations, including the appraisal report. The valuations must be disclosed at least three days prior to the closing date.
How Property Values Are Determined by Lenders
- Appraisal by a certified or licensed appraiser
- Automated Valuation Model (AVM) – This provides a statistical valuation range assuming the average marketability and condition of the home. It uses online data sources such as the Home Value Explorer (HVE) for current, comparative purposes with a low, market and high value for the area. This tool gives the lender a way to review and support a home’s appraisal results early in the loan origination process and adding assurance to the value of the home.
- Broker Price Opinion
Read an article about these changes here.
This blog was provided courtesy of Sibcy Cline Mortgage Services.