Appraisal Waiver Language
March 15, 2022
March 15, 2022
I want to touch base real quickly on appraisal waiver language. As we get into the early stages of what’s going to be a hot spring market. Or at least it is going to be a hot market for the few listings that come on the market. It’s going to be super competitive and we’re going to call that a hot market.
One concept to wrap your head around is appraisal waiver language. What does that mean, and is it for you? So this is one of the things people are doing to sidestep the mortgage contingency. Smart buyers are getting pre-underwritten with their mortgage loan officer and/or mortgage company.
If you don’t understand that, talk to me. I can put you in touch with a vetted lender that can pre-underwrite you, which means you have gone through the whole mortgage process, except they haven’t penciled in an address (because you have not got one under contract yet), and that by doing this, you can wave your mortgage contingency.
But when you do that, also, you might be waving the right to part of the mortgage contingency about having the property appraised. And without appraisal waiver language, you could be paying a million bucks for a house that appraises at $800,000 and you’ve got to come up with another $200,000 to put down.
Now, if you’re going to put 30% or 40% down on $1 million house, that’s not a problem. But if you’re a 10% down or a 20% down person, that’s going to impact your ability to get a loan. So the appraisal waiver language is something to pay attention to.
I’m glad to talk to you about it. Hope you find it helpful and useful and I appreciate your reading my blog. Please like it, subscribe, follow, whatever the medium is that you’re seeing us on. Anyway, thanks for reading.
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