Appraisal Desk Top Review

[Ray2000]

After our appraisal came in on the home we are purchasing the lender listed a condition on our commitment as subject a desk top review, which is currently being done. It came in at exactly the purchase price so I don't understand what the issue is. We are in a very rural area with comparables 5-10 miles away so I am guessing this is the problem. Can someone explain to me what is happening, the process, and what can be expected? How worried should we be?
Also, would it matter if we disagreed if this review produced a different result? We already found issues with the original appraisal. They had the home we are buying with only 1 bathroom despite their own pics showing two. In addition the appraisal had info wrong on the comps; wrong sales price; wrong sq footage, wrong # bedrooms, and one even had a garage that I know for a fact it doesn't have b/c I drive by it daily.
Any advice would be appreciated. Thanks in advance.

 

[J Grant]

A desk review typically only takes a few days, the bank will contact you, nothing to do now but wait. They all have their own policy so asking them would be best.

 

[Ray2000]

Thanks for the reply J Grant. What a nerve wracking process, but you are right, my only option is to wait. Although I understand the importance of an appraisal I am starting to I feel like I am being held upside down and shaken for my last penny and bit of sanity.

 

[Dan Umstead]

We already found issues with the original appraisal. They had the home we are buying with only 1 bathroom despite their own pics showing two. In addition the appraisal had info wrong on the comps; wrong sales price; wrong sq footage, wrong # bedrooms, and one even had a garage that I know for a fact it doesn't have b/c I drive by it daily.

That sounds like quite a few errors on the original appraisal. I would be very skeptical of the appraisal, with that number of errors. Who is the lender? Who is the AMC who ordered the appraisal?

 

[J Grant]

When one applies for a mortgage loan nowadays, that is pretty much the experience! Best of luck...if they find the appraisal deficient, they often order a new one.

 

[BRCJR]

After our appraisal came in on the home we are purchasing the lender listed a condition on our commitment as subject a desk top review, which is currently being done. It came in at exactly the purchase price so I don't understand what the issue is. We are in a very rural area with comparables 5-10 miles away so I am guessing this is the problem. Can someone explain to me what is happening, the process, and what can be expected? How worried should we be?
Also, would it matter if we disagreed if this review produced a different result? We already found issues with the original appraisal. They had the home we are buying with only 1 bathroom despite their own pics showing two. In addition the appraisal had info wrong on the comps; wrong sales price; wrong sq footage, wrong # bedrooms, and one even had a garage that I know for a fact it doesn't have b/c I drive by it daily.
Any advice would be appreciated. Thanks in advance.

The desktop review may uncover the errors you pointed out. If the reviewer has the market data available to them they should discover those items as well.

 

[Metamorphic]

A desk top review is a pretty standard thing for a high value loan, for an appraisal that does not meet preferred lending guidelines for distances to comparables, net and gross adjustments, etc. (rural appraisals never do), or appraisals where automated or non-professional reviewers find something to suggest that there is a problem.

 

[Restrain]

Also lenders are now required to get a review on 10% of the loans they handle and sell to the GSEs. Just part of the process. Did you file your concerns with the lender? If you did this may have triggered the review. All you can do is relax and see what happens.

 

[Ray2000]

Thanks for the responses. We did not mention the errors b/c we hadn't discovered them until we looked at it more closely after we were told the desk review was needed. That was a week ago and we still don't know the results.

 

[BRCJR]

Also lenders are now required to get a review on 10% of the loans they handle and sell to the GSEs. Just part of the process. Did you file your concerns with the lender? If you did this may have triggered the review. All you can do is relax and see what happens.

10% desk reviews and 10% of the desk reviews are field reviews.

100 loans=10 desk reviews (can be done by non-appraisers)=1 field review by an Appraiser