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Started By
Message
Help needed, I recently got turned down on a refinance loan for my home
Posted on 4/21/12 at 5:10 am
Posted on 4/21/12 at 5:10 am
The reason was that was explained to me was a problem with my appraisal.
The best I can tell from the appraisal and from the loan officer, is the following, take from my report
"The above sales are in the general area and are believed to be the best available to be
reflective of the market value of the subject property. Due to the subject property being located in a rural area it was
necessary to go further than one mile to find comparable sales. Although comp# 3 is furthest from the subject, it was
used because it was the only wood frame sale within the last year that was similar to the subject. Due to the difference
in site size this comparable sale had larger gross adjustments than the suggested Fannie Mae guide line of 25%, but
was necessary to show the proper reaction to the market."
Can someone explain this to me? The bank said that everything else was all good. It appraised for $205,000 and my payoff is $99,800. I can't understand why this would be a problem, if this is my problem at all.
The best I can tell from the appraisal and from the loan officer, is the following, take from my report
"The above sales are in the general area and are believed to be the best available to be
reflective of the market value of the subject property. Due to the subject property being located in a rural area it was
necessary to go further than one mile to find comparable sales. Although comp# 3 is furthest from the subject, it was
used because it was the only wood frame sale within the last year that was similar to the subject. Due to the difference
in site size this comparable sale had larger gross adjustments than the suggested Fannie Mae guide line of 25%, but
was necessary to show the proper reaction to the market."
Can someone explain this to me? The bank said that everything else was all good. It appraised for $205,000 and my payoff is $99,800. I can't understand why this would be a problem, if this is my problem at all.
4
Posted on 4/21/12 at 5:46 am to 318Tiger Fan
Try another bank.....
Posted on 4/21/12 at 9:35 am to 318Tiger Fan
It means the appraiser thinks his comps were really all that comparable and there's a lot more guesswork involved in his estimate than usual. Some banks don't want such loans although if you have 50% equity already I don't see the problem either.
Posted on 4/22/12 at 9:40 pm to 318Tiger Fan
It's because with that notation and the lack of quality comps, the bank feels it won't be able to sell the loan and since banks won't hold mortgages, they won't go through with closing - pretty standard. Try to work with the appraiser to tighten this up, if he won't budge it'll be hard to get a traditional underwriter to sign off on this deal.
Posted on 4/23/12 at 12:26 am to 318Tiger Fan
You were right about the cookie cutter aspect.
What was your loan to value ratio? Was it over 80%, was it a conventional loan?
I could ask a lot of questions, but it seems you may the same issue with any underwriter.
There are some loans out there right now that do not require an appraisal. This only applies if your current loan is owned by Fannie or Freddie. You need to find that out and then make sure your LO looked at that program.
You can use the links below to look it up. Make sure to enter the information as it is on your current home loan.
Fannie Lookup
Freddie Lookup
What was your loan to value ratio? Was it over 80%, was it a conventional loan?
I could ask a lot of questions, but it seems you may the same issue with any underwriter.
There are some loans out there right now that do not require an appraisal. This only applies if your current loan is owned by Fannie or Freddie. You need to find that out and then make sure your LO looked at that program.
You can use the links below to look it up. Make sure to enter the information as it is on your current home loan.
Fannie Lookup
Freddie Lookup
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