| When you're getting a Houston TX Mortgage you will | | | | required by the Home Valuation Code of Conduct |
| find that you will also need an appraisal. Pretty much | | | | (aka HVCC)? If the lender uses a Third Party |
| any loan program whether you're purchasing or | | | | Vendor, ask if your full appraisal cost is being given |
| refinancing requires it. Since this is the normal course | | | | to the appraiser and if it isn't, how much is given to |
| of doing business many people don't ask about this | | | | the appraiser? Remember, you usually get what you |
| requirement, but they SHOULD! | | | | pay for! Since most lenders use a Third Party Vendor |
| Over a year ago Fannie Mae and Freddie Mac | | | | you will not know where the appraiser is coming |
| required lenders to order the appraisal through an | | | | from to do the appraisal on the home your wanting |
| independent process that is separate from any | | | | to purchase and you will not have the opportunity to |
| interested party. What this means for most lenders is | | | | know the experience of the appraiser. |
| they end up going through a Third Party Vendor who | | | | If the lender is providing you with a Houston |
| hires an appraiser based on a certain set of | | | | Mortgage uses an internal group that is HVCC |
| requirements. This all sounds good in theory but in | | | | compliant you should ask about their appraisers' |
| practice it's been bad for the consumer. | | | | knowledge of the area and experience. The lender |
| Where these requirements fall short is with the Third | | | | should have no problem with providing you this |
| Party Vendor. They typically hire appraiser for less | | | | information and the credentials of each of the |
| than half of the actual appraisal fee and expect the | | | | appraisers. Just understand the lender doing your |
| appraiser to give 100% of their time and energy on | | | | Houston TX Mortgage will not have the ability to pick |
| the appraisal. Most of the seasoned and highly | | | | the actual appraiser who will be appraising your future |
| experienced appraisers can't afford to take on the | | | | home. |
| same work for half the pay so the Third Party | | | | As a Houston TX Mortgage Lender, we order our |
| Vendors usually hire new and inexperienced | | | | appraisals through an internal group that is |
| appraisers for the job. Sometimes the appraisers are | | | | independent as required by HVCC. Our appraisers are |
| hired for a job in an area they have no knowledge | | | | geographically assigned based on their typical service |
| of. These issues typically culminate into poor | | | | area and receive 100% of the appraisal fee you pay. |
| appraisals and values that are not consistent or | | | | All of our appraisers have worked with us for years |
| correct for the home being appraised. | | | | and we are comfortable with any of them |
| When the appraisal is challenged for value or any | | | | completing your appraisal. |
| other issues the lender must navigate a large | | | | If your shopping around and don't hear an answer |
| bureaucratic system with lots of red tape that can | | | | that resembles ours, you should keep shopping! |
| cause a buyer to lose the home of their dreams. | | | | Appraisal fees are typically over $400.00 and when |
| So what should a person getting a Houston Mortgage | | | | you add up other fees you typically have during the |
| ask about the appraisal process? First, does the | | | | purchase process such as inspections, earnest |
| lender you're thinking of using order their appraisal | | | | money, credit report, etc... you could be sourly |
| through a Third Party Vendor or do they order it | | | | disappointed right before you were SUPPOSED to |
| through an internal group that is independent as | | | | close. Not to mention... lighter in the wallet. |