Can I shop around for an appraiser when refinancing my home?

July 7, 2009 12:27 PM

When refinancing my home, can I transfer my appraisal between lenders, or must I pay for a new appraisal with every lender as I'm shopping around for the best deal?

I've been told by an appraiser and a lender to not buy an appraisal up front because as of May 1, the lender is now required to go through a govt agency that selects an appraiser.

In order to lock in a rate, I'm being asked to pay for an appraisal, but doesn't this prevent me from shopping around because once I pay for an appraisal that is presumably non-transferable, I will tend to just go with that first lender.

Or is the assumption that I won't lock in a rate until I've decided to go with that lender?

Am I missing something?

posted by jacobsee to work & money (5 comments total)

If I was a lender, I might accept an appraisal which has been commissioned by another lender, but I'd be hesitant to accept one which has been commissioned by the borrower - there's too much risk of the borrower having shopped around until they found an appraiser willing to write an appraisal to order (which is the kind of thing which the government agency regulation is aimed at preventing lenders from doing).
posted by Lolie at 12:37 PM on July 7

Does lendor y have appraisal company x (that your first lender, lender z used) on their list of allowed appraisers?

If no -> then no, they wont accept it.
If yes -> they might accept it.
posted by SirStan at 12:41 PM on July 7

When I was a lender, we had a list of approved appraisers. You may want to find out which appraisers are on the most lists.

Also, if an appraisal was too old, it would have to be redone, or have new comparable properties added. Plan your timing, so that it does not age too much.

I assume that you will lock a rate when you apply, and pay the application fee. That fee usually includes the cost of the appraisal. If you bring the appraisal to the table, you should be able to get a lower fee, but may run into rules and requirements.
posted by Midnight Skulker at 1:29 PM on July 7

Just figured out that the proper terms to google for this are: hvcc and ivpi...
posted by jacobsee at 2:27 PM on July 7

Maybe I'm the one who's missing something, but why keep shopping after locking in a rate? Why not do your rate comparing first, then pick a lender, THEN pay the application (or whatever) fee?
posted by troywestfield at 8:33 AM on July 8