SDR – I can only go by my most recent (past 2 months or so) experience w/lenders and appraisers. It was an ordeal that was stressful and frustrating. You can tell me all about the new rules, etc. etc.
The original broker we were dealing with ASKED me what number we needed b/c he knows an appraiser that can come in at whatever number we want. This was after we had gone through one of his other lenders that guaranteed no cost IF we had 20% equity. Needless to say, that appraiser came in lower of the 80% LTV.
This isn’t my first rodeo. I have checked the comps in my area and coming in at 80% LTV was easy, considering view and improvements compared to other properties that sold in the area.
After wasting so much, time, effort and energy, maybe they thought we’d pay to do the loan, regardless of the appraisal amount. However, for us, it mattered to get rid of PMI. We didn’t do the loan w/that lender.
We ended up going w/a totally different broker-lending company. That appraiser that came to the house said to me when he was here, “Off the record, do you need to come in at a certain amount?”
I’m not making this up. I was so stressed about all this, I was talking to CAR about it.
Is my situation the rare exception? I am too skeptical to think I’m the only one.
My conclusion: They can come up w/any number, high or low. It is so subjective, variable, etc. Rules or not.
