How Does the Appraisal Process work on an FHA loan?

Asked by D, Minnetonka, MN Wed Jun 10, 2009

The appraiser goes out to the house, does the appraisal (makes sure its worth X amount of $ and that the house is in good condition) then does the appraisal goes to the underwriters or back to the sellers agent? An appraisal was done on Friday- property that needs a lot of work (will probably need a 203K) but the underwriters haven't said whats going on and the agent won't reply. Whats up? Who has this appraisal? What is the next step? I am so frustrated!

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Lukasz Wojtu…, , Fairview, NJ
Wed Jun 10, 2009
Just to add to what Steve said.

The appraisal typically takes a few business days and since you said it will probably need a 203K loan, it might actually take longer. Plus I believe FHA approved contractors must also come in and determine the cost to fix whatever is neccessary, so the report just might not be ready yet. It's only been 3 business days since the appraisal happened.
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D, Home Buyer, Minnetonka, MN
Wed Jun 10, 2009
Does it go to the lending bank or the REO bank? The original offer and appraisal was for an FHA loan, but I am pretty sure it will need to be a 203K loan now b/c of all the issues the house has. So I don't know where or who will determine if they can switch financing.
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Steve Hoem, Agent, Maple Grove, MN
Wed Jun 10, 2009
The appraisal goes back to the underwriter(s) / loan processor(s) and usually the loan originator or mortgage officer. The real estate agent would only get a copy of the appraisal if the loan officer provided him/her a copy.
Your best bet is to contact the loan officer who originated the loan and ordered the appraisal and title work and if they don't respond in a timely fashion (within a day or two at most), call the mortgage or branch office and ask to speak with someone else.
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