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Can Conventional Loan Appraisal Be Transferred to Different Lender
Can a conventional loan appraisal be transferred from one lender to a different lender?
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1 Reply
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A normal loan assessment can typically move from one lender to another. However, this depends on some conditions:
Key Points:
Lender Cooperation: The appraisal must be released by the first lender to the second lender. Some lenders may want to do something other than this. They might have paid for the appraisal upfront and don’t want to give it away for free.
Appraisal Independence: An appraisal must satisfy the Appraisal Independence Requirements (AIR) to be eligible for transfer. This means an AMC or some other independent process ordered it, so no undue influence is involved.
Acceptance of New Lender: The new lender should agree to accept transferred appraisals. However, some lenders may need an appraisal under their name to ensure it meets their underwriting standards.
Time Sensitivity: Appraisals usually have a validity period (normally around 120 days). If you move outside of this window, you may need another valuation.
Process:
Request the Transfer: You or your original lender must request the report on your evaluation’s transfer to its new home with another bank.
Complete Required Forms: The new lending institution may require certain documents or forms when processing this.
Verification by New Lender: They will examine whether everything is alright based on their views about what all appraisals should contain, etcetera.
Considerations:
Costs: Even if appraisals are transferred between institutions, there might still be costs associated with verifying them and updating them where necessary.
Delays: Transferring can sometimes take too long; thus, if you know that time is running out, it might be wiser to order another one.
It is possible but also complex since both sides must act according to rules set by regulators. Therefore, it is recommended that you contact all parties involved.