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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.
Posted on 4/21/12 at 6:17 am to MikeDaTiger23
quote:100% this!
Try another bank.....
Posted on 4/21/12 at 6:25 am to NC_Tigah
I am for sure, got the call yesterday at 13:00. Woke me up and I was a little dazed and confused from working the night before. I'm on nights till wed morning and then I going to find another bank to deal with.
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 4/21/12 at 6:58 pm to foshizzle
So basically I didnt get the loan because i dont live in a "cookie cutter house" in a multi home subdivision that has had multiple sale within the last year? That sounds crazy to me, esp since I have 50% equity in my home. I would think that would be a good deal for the bank. If I default on my loan, they could make double their money.
Do you think I will have this problem with other banks as well? Am I screwed, I know im confused as hell
Do you think I will have this problem with other banks as well? Am I screwed, I know im confused as hell
Posted on 4/21/12 at 9:18 pm to 318Tiger Fan
What is your current rate and what rate do u expect to refinance at? how long?
Posted on 4/21/12 at 9:25 pm to MikeDaTiger23
They don't want your business, go some where you will be appreciated. A 50 % loan to value should be desired business as long as your credit is in order.
Posted on 4/21/12 at 9:43 pm to MikeDaTiger23
Currently have 23 years left on a 30yr @ 5.875. Was locked in with this bank on a 15yr @ 3.3. They told me that my credit and finances were good only problem was with the appraisal.
Posted on 4/22/12 at 7:14 am to 318Tiger Fan
They have to find comps. One comp they used was so off the mark it required an adjustment of 25% based on the fact that your property is in a rural area, and it's more difficult to find recent comparable sales in a rural area compared to an urban area.
Your lender thinks there are other comps in the area that don't require that much adjustment and it wants the appraiser to use one of them in the appraisal.
The appraiser probably can't bring back the value necessary to close the type of loan you want if he uses the comps the lender wants him to use.
Sounds like you need a new appraiser, or he needs to write one helluva explanation for why he's using such an oddball property and making such a vast adjustment...
You aren't being turned down. You're getting a stipulation that is preventing closing. Get with your appraiser or your appraisal management company or take a look what kind of loan you want. Moving one aspect of th loan or the other could help the lender get a clear to close.
Your lender thinks there are other comps in the area that don't require that much adjustment and it wants the appraiser to use one of them in the appraisal.
The appraiser probably can't bring back the value necessary to close the type of loan you want if he uses the comps the lender wants him to use.
Sounds like you need a new appraiser, or he needs to write one helluva explanation for why he's using such an oddball property and making such a vast adjustment...
You aren't being turned down. You're getting a stipulation that is preventing closing. Get with your appraiser or your appraisal management company or take a look what kind of loan you want. Moving one aspect of th loan or the other could help the lender get a clear to close.
Posted on 4/22/12 at 7:17 am to 318Tiger Fan
quote:Unless I'm missing something, the only problem was with the lender.
only problem was with the appraisal
Posted on 4/22/12 at 5:56 pm to NC_Tigah
"because it was the only wood frame sale "
Is your hose made of cinder blocks or were 2 of the comps cinder blocks ? If not it is a wood frame house.
99.9 % of all homes are "wood frame", ie the interior walls are wood/studs.
Is your exterior wood or brick, either way its a wood frame.
Get another appraiser, this one dont even know the correct terminology for what kind of houses there are. A brick exterior is still a wood frame.
Is your hose made of cinder blocks or were 2 of the comps cinder blocks ? If not it is a wood frame house.
99.9 % of all homes are "wood frame", ie the interior walls are wood/studs.
Is your exterior wood or brick, either way its a wood frame.
Get another appraiser, this one dont even know the correct terminology for what kind of houses there are. A brick exterior is still a wood frame.
Posted on 4/22/12 at 6:58 pm to Drop4Loss
quote:
"because it was the only wood frame sale "
I think he was referring to the exterior being cypress board and batten.
Posted on 4/22/12 at 6:59 pm to NC_Tigah
quote:
Unless I'm missing something, the only problem was with the lender.
thats what im thinking too
Posted on 4/22/12 at 7:03 pm to GFunk
quote:
You aren't being turned down. You're getting a stipulation that is preventing closing. Get with your appraiser or your appraisal management company or take a look what kind of loan you want. Moving one aspect of th loan or the other could help the lender get a clear to close.
thanks for the advise, im going to see what my bank that already has the mortgage can offer first, and then go from there
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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