Lately we have be receiving appraisal waivers from loans that we send to Freddie Mac. Freddie Mac is a Conventional loan.
These waivers are happening when the loan is a low Debt to Income (DTI), low Loan to Value (LTV) and a high credit score. The automated system for Freddie Mac lets us know if the appraisal is waived once we run the loan scenario. The benefits to the buyer is pretty significant. They save money on the appraisal ($400-$500) and do not have to worry about an appraiser requiring repairs being done prior to closing.
Most buyers already know of the repairs they need or want to do. Some people have questioned whether this is a bad thing for the market or the buyer. They have asked “How can the buyer be sure they are buying a house that is worth the sales price?”
Good question. I answer it in the video but with the growth of technology, the lender is able to get a very good idea of what the house is worth. When you get the appraisal waiver it means that you are buying the house at market value or under market value which is even better.
I think this is a good thing for consumers. Let me know if you have any questions or concerns by calling my cell at 239-910-5668 or office line at 239-437-4278. Thanks!