Refinancing question

Asked by Expensive duck, 30024 Mon Nov 26, 2012

Recently (April 2012), I bought a new home for 400K in Suwanee GA. I was trying to refinance it but the appraisal came up as 350K. Home is still in brand new condition. In the appraisal report it was mentioned that “there was no factors (market conditions) changed it was not sure why the appraised value is so low”. With this being the case, I not able to refinance it now…What are the options I have to appeal? Is there any option to get it back close to 400K? Can we contact the appraiser directly? Any suggestions would help

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Rodney Mason’s answer
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Mon Nov 26, 2012
For an appraisal report to be valid, it must contain at least 3 comparable homes that have closed within the last 90-180 days. Should nothing comparable have closed in that time frame, the appraiser can go up to a maximum of 12 months from the inspection date. Often, an additional closed sale will be provided along with 1-2 pending sales or active listings for a total of 6 comparables.

Selection of comps is somewhat subjective based on the appraiser since it really is a judgment call. The best comps will be of similar age, square footage, # of bedrooms/bathrooms, and style of the subject property. At least 2 of those 3 comps should come from the subject property’s neighborhood. One must come from an outside neighborhood to better bracket the overall market area value. Appraisers do need to take into account school districts and city/county boundary lines.

The Appraiser Independence Code is part of an Act that all lenders must follow makes the disputing of a value quite difficult. To make a dispute, the lender must determine that the appraisal report is flawed and has a material defect. This means that comps that are “better” must have been available but not used. Your agent would have to provide these “better” comps to determine if a dispute is justified.

An appraisal cannot be disputed simply because it did not arrive at a certain value. That would be a violation of the Code.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes
one, , 76155
Mon Nov 26, 2012
What type of loan do you have? You may be able to get a streamline refi without an appraisal. Your loan officer should be able to provide you with this information.
0 votes
thanks for the response Chad. I am into 10/1 ARM trying to convert it into 30 year fixed.
Flag Mon Nov 26, 2012
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