Sometimes a home’s appraised value is different than the agreed- upon purchase price. A low appraisal could affect the sale of a home because the mortgage lender will not lend more than an agreed upon percentage of the appraised value. If you don’t agree with an appraisal, you can ask the lender to revisit the assessment—a process called a Reconsideration of Value (ROV). If the appraisal results in pre-sale repairs being necessary, the loan officer will notify the agents. At that point, perhaps your agent will negotiate having the seller do the repairs for the house in order for it to appraise at the sales price. Or, possibly, the price of the home could be adjusted to take into account the repairs you will have to pay for, or money can be set side in an escrow account contributed by the seller to compensate you for the "cost to cure". If not the contract can be renegotiated or cancelled.
The appraisal is the final step of the processing phase.
UNDERWRITING: LOAN CONDITIONS
Mortgage underwriters are there to make sure the loan package is correct and complete. The amount of time to underwrite has decreased because of automation. There’s less searching for paperwork or missing pages with modern systems. With today’s data storage options and access lenders increasingly have direct channels which allow them to quickly get banking, income, and tax information. The borrower must provide everything to the lender that the underwriting department requires. Addressing all underwriting conditions is a crucial part of getting a loan to the closing phase. The underwriter must also be certain that every loan application statement made by the borrowers is correct. Lenders must verify that borrowers have the ability to repay the loan.
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