Homebuyers Now Have Better Access to Home Appraisals
A new law has been enforced that will provide homebuyers with a deeper insight to their home appraisal, which includes the reviews and the electronic cross-checks. Lenders use these to determine the loan amount which should be approved. In the light of this policy, the buyer will also have ample amount of time to challenge the appraisal should they suspect it has not been conducted properly and contains errors.
The policy has already been put into effect. Lenders and credit agencies have to inform all people who apply for mortgages that they are allowed to receive copies of appraisal, valuations, reviews and any other data that is used prior to closing the deal. Once the appraisal report is completed or there are only three days left for the agreement to be finalized, the applicant can view these materials. Lenders are also obliged to report to the buyers about their new rights within just three working days.
In the previous procedure that was followed, lenders were not legally obliged to provide you with a copy of the appraisal until you requested it. As for all other data that is used, you also could not view that until you paid the real estate agent a certain amount as fee. This has now changed and you have a legal right to every piece of information that was vital in the loan decision procedure.
The new rules have modified the Equal Credit Opportunity Act and the Consumer Protection Act of 2010. Moreover, they are applicable only for those mortgages and construction loans that can be regarded as first lien on a property. This is also true for reverse mortgages. If you apply for a second mortgage, the laws do not hold and the lender has no legal authority to provide you with data. However you can still make a request if you wish to see it.
Coming onto the pros, the new rules are going to do you good. You can view the appraisal report and make sure it contains no errors. Should you find a discrepancy, you and your agent can challenge the report and ask for corrections. If you have any concerns, put them up and they will be addressed.
The experienced appraisers are also thrilled with the new laws because they can provide them with a better income stream, as lenders can no longer rely on poor services. This was often done in the past because of low costs.
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