Just Approved: Appraisal waiver speeds the process
Mortgage broker: Liz Bayer, ProMortgage.
Property type: Single-family home in Walnut Creek.
Appraised value: $985,000.
Loan amount: $726,525.
Loan type: 30-year fixed.
Rate: 3.875%.
APR: 3.904%.
Backstory: Back in 2015 I helped a client obtain mortgage financing with two loans and a 10% down payment. The client approached me recently because their second Home Equity Line rate was variable and had grown to more than 7%, so he was interested in consolidating his first and second mortgages into one loan.
We had several variables that were in our favor. For starters, the property’s value increased by more than 15% in just a few years. Additionally, the conforming loan limit increased from $625,500 to the $726,525. Plus my borrower's earning power had grown as well.
This allowed to consolidate and reduce their payments more than $400 a month.
The cherry on top was that we were also able to close quickly because we were granted an appraisal waiver, which saved time in closing and saved my clients a $550 appraisal fee.
Appraisal waivers for conventional financing have been available on refinances, and in 2019, these also have been granted on conventional loans for purchases as well.
Of course, such a deal must meet certain guidelines that include the borrower's qualifications and a 'test of reasonability' on the property’s value.
In my client's case, he was well-qualified and the property value met that reasonability test.
Liz Bayer, ProMortgage, 415-383-3111, lizforloans@gmail.com.