“Why are we Spending the Money for a New Appraisal?”

I understand the problem, but it is such a waste of money. There are often situations when a bank, credit union, banker or mortgage company denies someone for a mortgage. Very often an appraisal was already paid for and completed and that appraisal cannot be used by another lender when the folks are doing a conventional mortgage.

I met with clients last week to discuss a refinance. They shared with me that they had been denied by two local banks. In each case they went through the process and just before the end they were denied and in each case paid for an appraisal.

The problem for these folks their credit report was a mess. All of the issues stemmed from their student loans. These loans had been late at certain points, deferred over time, consolidated over time and now are being paid perfectly. Unfortunately the student loan companies are not very good correcting or even updating information.

I told them before we make arrangements on another appraisal we have to get the credit bureaus to fix the problems. I gave them a detailed assignment of what they have to get from the different student loan companies so that we can update the bureaus and their credit reports.

Before an appraisal is done, a lender no matter who it is needs to make sure that the clients have a chance to get approved. These folks will have over a $1000 invested in appraisals by the time their refinance is completed.