Boost The Mortgage Appraisal Process? How? When a prospective buyer starts looking for a home, the first steps, quite naturally, are qualifying for a mortgage, finding one to purchase, going through the Mortgage Process. That means the application process, loan approval, and then… the Appraisal Process. The appraisal can go smoothly or not. How can this part of the process move faster than a snail's pace? And what exactly is an appraisal?
Well, first, common sense tells us that no lender is going to lend more money than the property is worth. But how do you know the worth? Determining that is the Home Appraisal Process. It's a professional, unbiased opinion of the home's value, backed up by facts, and it's based on several different factors.
Size and floor plan - square footage, the number of bedrooms, size of the lot it's built on, and the floorplan.
Owner upgrades - Expansion of the original home, adding rooms or other amenities, upgrading HVAC, bath fixtures, finishing the basement, things like that.
Exterior - Is the structure sound? Is the exterior in good shape? How about the roof? What about the yard? Does it have a pool or barbeque or pool?
Interior - Including appliances, flooring, heating and air conditioning systems, paint and trim, electrical systems, plumbing, and
Location - Proximity to public transportation, quality of schools, nearby shopping, power lines or industrial areas, nearby highways or busy streets, the "feel" of the neighborhood, crime rates, and types of nearby housing.
Comparable home prices - What are the most recent sale prices in the immediate area for similar homes?
With these home Appraisal Process Steps completed, you're on your way to purchase. The average appraisal can take up to 10 days, but the emphasis is on speed in today's market, so is there any way to shorten that time? And if so, how?
Automate The Mortgage Appraisal Process
Did you know… of course you know… that the bottleneck in real estate appraisal now is the time it takes to order, schedule, and then receive an appraisal? Currently, this is a manual process that involves emails or phone calls to get the ball rolling. Wait, what?
You shouldn't be surprised to learn that many lenders are turning to automation to turbocharge this process. Using AI, this process can be initiated by entering a case number from the loan application, and off it goes! The appraisal is ordered, scheduled, and the results returned without any further action on the lender's part. Since this significantly cuts into the turnaround time, avoids communication failures, and allows more straightforward error mitigation, not only is it quicker and more efficient, but it's also more accurate.
This means that all the components of the appraisal process need to be included in this automated system.
Important Aspects Of The Appraisal Process
The significant factors in the appraisal process include:
- Square footage, the number of bedrooms, the size of the lot it's built on, and the floorplan.
- Expansion of the original home, adding rooms or other amenities, upgrading HVAC, bath fixtures, finishing the basement, things like that.
- Is the structure sound? How about the roof? Is the exterior in good shape? What about the yard? Does it have a pool or barbeque or pool?
- Including appliances, flooring, heating and air conditioning systems, paint and trim, electrical systems, plumbing, and
- Proximity to public transportation, quality of schools, nearby shopping, power lines or industrial areas, nearby highways, or busy streets, the "feel" of the neighborhood, crime rates, and types of nearby housing.
- What are the most recent sale prices in the immediate area for comparable homes?
What Are Your Options Now?
All new technologies automating the appraisal process came about because of need. In this case, it was more than one need. The safety concerns brought on by Covid 19 and the dramatic increase in home buying clogged the existing appraisal process. The technology found a way to overcome those obstacles. But putting these new processes in place can be expensive. With start-up costs and personnel training, the time it takes to ramp up will put off the gains streamlining the appraisal process will eventually bring.
But the cost may be beyond the reach of many smaller lenders and brokers. The best choice might be to Outsource the entire appraisal process. What does that look like? Well, a little like this.
You'll be working with Experienced Professionals, cross-trained in many skills, so your project stays on track. Scalable Services so your outsource partner will always have the resources to fit your needs. Cost-Effective Services since you use just the resources you need, there's less waste. Data Security so your outsourcing partner will be able to offer security measures that you probably couldn't afford on your own. Accuracy and Efficiency, so you'll be collaborating with a highly trained team with proven industry experience. Latest Tech so you won't have to invest in Tech; your outsource partner comes with the latest 24 / 7 Support, so you'll never suffer from a service outage. Outsourcing firms routinely offer redundant services.
So, embrace the new, but take a partner to this new world of Mortgage Loan Processing and see how painless the transition can be. Talk to a professional outsourcing firm today!
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