When you apply for a mortgage, your lender hires an appraiser to inspect the property, making sure it’s market value meets or exceeds the loan amount. Unfortunately, today there just aren’t enough qualified home appraisers, and it’s causing delays for home buyers eager to close their deals.
“The Realtors® and loan officers know if their market is one that is experiencing the severe appraisal delays; not all markets are,” says Tal Frank, president of PhysicianLoans. But if your market has an appraisal backlog, “you should expect the appraisal to be delayed and therefore the closing to take two to four weeks longer. If there is proper communication and expectations upfront, home buyers and home sellers should not end up in a panicked state.
“Rather than closing in 30 days, it may take 60,” he adds. “Not awful if everyone knows this at the start of the transaction.”
“Some companies offer a standard 30-day lock, but the 60-day lock is advisable in the affected markets,” Frank continues. “If the buyer is working with a lender that offers 30-day locks as standard, the buyer can either wait to lock or pay the lender a fee upfront to extend the lock period.”