The traditional way of applying, underwriting and closing on a mortgage no longer fits with people lives*, and if we’re being frank, in-person appraisals don’t either.
Here’s What We Mean:
When you are in the process of buying a home, you will likely be required to have a licensed or certified home appraiser to appraise the property. The appraiser’s job is to review your potential new home and report on the home’s value, which is calculated based on the research of recent, comparable home sales in the area, as well as an in-person analysis of the property itself.
The appraisal also is a way for mortgage lenders to know the home is worth the sale price and loan amount and can be used as collateral if a borrower defaults on their loan.
This process can vary from one to two weeks or longer based on the appraiser’s schedule and when the lender requests the appraisal itself. Sometimes, this waiting game just isn’t enough for homeowners who need to move as soon as possible.
The Benefits of an Appraisal Waiver
Appraisal waivers have been beneficial since the start of the COVID-19 pandemic because they often reduce the time spent mingling with an outside company.
In addition to saving you the cost of an appraisal fee** (which could be upward of $500), an appraisal waiver also can speed up the loan process. You won’t need to schedule (and wait) for an appraisal, then wait again for the official appraisal amount. Instead, a lender can waive the requirement and continue on with your application.
With the time saved by using an appraisal waiver, a borrower could close on their home sooner.
Who Can Get an Appraisal Waiver?
Eligibility for an appraisal waiver depends on the type of home you purchase and is typically reserved for buying or refinancing single-family homes and condos.
Approval of an appraisal waiver also depends on the loan-to-ratio value of the property. Typically excluded from appraisal waivers are new construction or manufactured homes, co-ops and multi-family properties.
How to Get an Appraisal Waiver
To acquire an appraisal waiver, work with a direct mortgage company that offers this benefit. Wyndham Capital Mortgage utilizes Fannie Mae’s Day 1 Certainty program, which could simplify the lending process and help get you into your new home sooner.
Here’s How it Works:
Once you consent to have your electronic data and credit report pulled, your mortgage lender will run the Fannie Mae program to see if you are eligible for a waiver. We work hard to get your answer in minutes and get to work right away to give you the home lending experience you’d expect from a digital mortgage lender.
For those who don’t qualify, Freddie Mac has its own version of Day 1 Certainty called Loan Advisor. If you’re not eligible with Fannie Mae and if your loan qualifies for a waiver, the lender can run Freddie Mac’s program to see if that’s a better fit for you.
Wyndham Capital’s use of the Day 1 Certainty and Loan Advisor is part of our commitment to provide you with the digital advantages you need to make your entire mortgage loan process a walk in the park, all while helping you close on your home up to 15% faster than the industry average!***
Contact WCM today to find out more about how the Day 1 Certainty can work for you.
*Wyndham Capital Mortgage commissioned Atomik Research to run an online survey of 2,342 adults in the United States for their Mortgage 101 survey. The margin of error fell within +/- 2 percentage points with a confidence interval of 95 percent. The fieldwork took place between March 23rd and March 29th, 2021. Atomik Research is an independent creative market research agency.
** These fees maybe charged by a Third Party service provider in connection with your loan.
*** 15 percent faster close time based on Wyndham Capital Mortgage closing data from 2019 to 2020 versus industry numbers courtesy of Ellie May Organization Insight Report data from 2019-2020.