Appraisal Timeline and Results

Appraisal Timeline

  1. Fill Out Payment Form: Once you have signed your disclosures, you will receive an email asking you to sign Morty's credit card authorization form. At this stage, you can an appraisal contact if you have one. This is the person who will schedule the appraisal inspection with the appraiser.
  2. Appraisal is Ordered: Once your payment form has been received, Morty will order your appraisal directly through your lender, and the lender will choose an AMC (Appraisal Management Company) to find a local appraiser. Due to legal restrictions, Morty is not able to communicate directly with the appraiser. Please keep in mind that depending on the appraiser availability in the area and the type of property, the timeline of this process can vary and may affect your closing date. 
  3. Appraisal is Scheduled: After your appraisal has been ordered, the inspection date will be scheduled between the appraiser and the listing agent (or with the seller directly). This is typically scheduled a few days after ordering.
  4. Property is Inspected: On the date of your inspection, the appraiser will inspect the home inside and out, looking for any issues and determining the quality of the current condition as well as confirming the size of the property. The appraiser will use this information for the Uniform Residential Appraisal Report (URAR).
  5. Appraisal Report is Completed: The appraiser may take up to another week to complete their report after inspecting the property. They will use the info from their visit as well as researching recent sales in the area to determine the value of the home. Once the underwriter reviews the report and you receive this report back, the appraisal process is complete!

Note: Depending on the findings of the report, and what your home is valued at compared to the purchase price, adjustments may need to be made to your purchase transaction. 

Results

What happens after your report is completed?

Once Morty has received the report from the AMC, we will review it internally. Based on the appraiser's findings, we might recommend to you what the next best steps would be to take. A few scenarios can occur:

  • The appraised value is the same or higher than your purchase price → nothing is needed on your end! This means that you are getting a fair deal on the purchase.
  • The appraised value is lower than your purchase price → You can work with your seller to try and re-negotiate the purchase price, you can lower the loan amount and bring additional funds to the closing table, or you can consider walking away from the transaction if your contract allows for it.
  • The appraisal is valued "as is" → this means that the property has been evaluated based on current conditions and nothing needs to be fixed. 
  • The appraisal is valued "subject to" → this means there are issues with the property that need to be resolved before you can get approved for the loan. Once the property is complete or the issue is fixed, we will need to order a Final Inspection (1004D) where the appraiser goes back to the property a second time. Ideally, we like to have this ordered as soon as all of the work is complete, so please keep Morty updated on any construction on your home.

→ Continue to the next article in this series, Appraisal Issues

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