An appraisal exemption shortens the valuation process because buyers who qualify for an exemption may skip the in-person visit of an authorized appraiser. Instead, the lender will use the data provided by an automated insurance system to determine the value of the home being sold. This information will include recent sales prices for a nearby home and any previous sales data for the home the buyer is buying. The easiest way to address a valuation deficit situation is to simply avoid the problem.
Buyers may need to carefully consider how much they are offering for a property. Making the best and highest possible offer isn't necessarily the right solution if the buyer needs a mortgage to pay for the property and property values in the area have fluctuated recently. Under the plan, lenders can obtain a “property inspection exemption.” Fannie Mae will accept the lender's valuation without an appraisal. If it later turns out that the estimate was incorrect, the lender will not be forced to repurchase the loan.
But because they recently put theirs up for sale, which means they've already taken care of all the major curb appeal items. Appraisal exemptions allow buyers who meet certain requirements to skip the valuation process when buying a home. For these qualified buyers, rather than requiring a professional in-person appraisal, the lender will normally rely on automated assurance systems to determine value of the house. It says that “in conjunction with the purchase of a consumer's main home, brokers' opinions on prices cannot be used as a primary basis for determining the value of a property in order to originate a residential mortgage loan secured by that property.
Lower LTVs allow you to get lower interest rates, and that's why achieving a higher home valuation can save you money on your mortgage. Usually, the lender requires it when someone uses a mortgage to buy a home or refinance their current mortgage.
